No U/s 153A Addition, But Reassessment Power Explicitly Preserved

DCIT Vs Oswal Apparels Pvt. Ltd. (ITAT Chandigarh)

ITAT Rectifies Abhisar Buildwell Fallout: Chandigarh Bench Adds Liberty to Reopen u/s 147/148 in Absence of Incriminating Material

Chandigarh ITAT, Bench ‘B’, in DCIT Vs Oswal Apparels Pvt. Ltd. (MA No.121/Chandi/2025 in ITA No.25/Chandi/2022; AY 2010-11; order dated 18-12-2025), allowed the Revenue’s Miscellaneous Application u/s 254(2) and modified its earlier order to align with the law laid down by the Supreme Court in PCIT Vs Abhisar Buildwell Pvt. Ltd.

The Tribunal first condoned the delay and held that the Miscellaneous Applications were within limitation, computing the period from the date of receipt/communication of the Tribunal’s order, following the Bombay High Court decision in Accost Media LLP.

On merits, the Tribunal noted that while dismissing the Revenue’s appeals earlier by applying Abhisar Buildwell, it had inadvertently omitted to record the liberty expressly recognised by the Supreme Court—namely, that completed/unabated assessments, though not amenable to additions u/s 153A in absence of incriminating material, may still be reopened independently u/s 147/148, subject to fulfilment of statutory conditions and limitation.

Accepting the Revenue’s contention, and after considering the Delhi High Court ruling in Good Earth Plotted Development Pvt. Ltd., the Tribunal held that the omission constituted a rectifiable mistake apparent on record. Accordingly, it inserted an additional paragraph (Para 8A) in its original order clarifying that the AO is at liberty to invoke sections 147/148, strictly in accordance with law and limitation, as saved by Abhisar Buildwell.