M/SBHOLA FOOD PRODUCTS(P) LTD.,ALLAHABAD vs. JT. CIT.(OSD),, ALLAHABAD

ITA 67/ALLD/2013Status: DisposedITAT Allahabad09 June 2026AY 2006-078 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition under Section 153A(b) was not sustainable as it was not based on any incriminating material found during the search. The Supreme Court's decision in PCIT vs. Abhisar Buildwell (P.) Ltd. was relied upon, stating that additions in completed assessments under Section 153A require incriminating material.

What were the facts?

The assessee's appeal concerns an addition of Rs. 49,54,465/- made under Section 40(a)(ia) of the Income Tax Act. This addition was made by the Assessing Officer (AO) in a Section 153A assessment, despite the same issue having been dealt with in a prior Section 143(3) assessment.

What were the issues?

Whether an addition made in a Section 153A assessment can be sustained if it is not based on incriminating material found during a search, especially when the issue was already considered in a prior completed assessment.

Which sections of the Income-tax Act were involved?

Section 153A,Section 40(a)(ia),Section 143(3),Section 132(1),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ALLAHABAD BENCH, ALLAHABAD

Hearing: 12.03.2026Pronounced: 09.06.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the orders of the ld. CIT(A), Allahabad passed under section 250 of the Income Tax Act, 1961 dated 22.11.2012, wherein the ld. CIT(A) has partly allowed the appeals of the assessee against the orders of the Assessing Officer for the assessment year 2006-07 passed under section 153A(b) of the I.T. Act, 1961 on 28.12.2011. The grounds of appeal are as under:- “1. That in any view of the matter the assessment made under Section 153A(b) of the act is without juri iction, illegal and addition of Rs. 49,54,465/- made by the assessing officer by invoking provisions of Section 40(a)(ia) of the Income Tax Act is highly unjustified a

The order continues below.

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