PERFECT PROPBUILD PRIVATE LIMITED,DELHI vs. ACIT, CENTRAL CIRCLE- 1, GURGOAN

PDF · subscribers
ITA 7930/DEL/2025Status: DisposedITAT Delhi21 May 2026AY 2011-123 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessment year was unabated, any addition must be based on specific incriminating material. The change in accounting method by the Assessing Officer was not supported by such material.

What were the facts?

The assessee's appeal concerns assessment year 2011-12, following a search action on February 5, 2014. The Assessing Officer made an addition of Rs. 6,05,38,594/- based on an estimated 20% of receipts.

What were the issues?

Whether additions made in an unabated assessment year following a search are valid without specific incriminating material. Whether a change in accounting method by the AO constitutes incriminating material.

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri Ved Jain, Adv, Shri Ayush Garg, CA
For Respondent: Ms. Amisha S Gupt, CIT DR
Hearing: 18.05.2026Pronounced: 18.05.2026

PER SATBEER SINGH GODARA, JM

This assessee’s appeal for assessment year 2011-12, arises against the Commissioner of Income Tax (Appeals)-3 [in short, the “CIT(A)”], Gurgaon’s order dated 30.09.2025 passed in DIN and order no.11177/16-17/Ggn CIT(A)-3, involving proceedings under section 153A(1)(b) of the Income-tax Act, 1961; hereinafter referred to as ‘the Act’.

ITA No. 7930/Del/2025 Heard both the parties. Case file perused.

2.

We notice at the outset that the assessee/appellant before us canvasses its first and foremost ground challenging validity of the impugned addition of Rs. 6,05,38,594/- made in the assessment dated 29.03.2016 framed by the learned DCIT, CC-1, Gurgaon u/s 153A r.w.s. 143(3) of the Act. We wish to make it clear that the learned departmental authorities had carried out section 132 search action herein in M/s Antariksh Group of cases; including the assessee, on 05.02.2014 which renders the assessment year A.Y. 2011-12 herein as “unabated” one wherein any addition is to based on the specific incriminated material only going by PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC).

3.

This being the clinching legal position, the Revenue could hardly dispute that what all the learned Assessing Officer has added in the assessee’s hands is an estimated sum @ 20% of its receipts amounting to Rs. 30,26,92,970/- going by AS-9 i.e., Percentage Completion Method. We thus conclude in this clinching factual backdrop that such a change in method of accounting at the learned Assessing Officer’s behest could not be termed as an instance of any incriminating material so as to 2 | P a g e

ITA No. 7930/Del/2025 concur with impugned addition forming the sole subject matter of our instant adjudication. The same is directed to be deleted in very terms therefore. All other remaining pleadings between the parties on merits stand rendered academic. 4. This assessee’s appeal is allowed.

Order pronounced in the open court on 18 th May, 2026.

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21.05.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

3 | P a g e

More judgments on Section 153A

All 18,957 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →