SUNSHINE DEALTRADE PRIVATE LIMITED,KOLKATA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1,, RAIPUR

ITA 212/RPR/2026Status: DisposedITAT Amritsar25 September 2026AY 2015-201623 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order passed under Section 153C read with Section 143(3) is a nullity and bad-in-law because the Assessing Officer failed to issue the mandatory notice under Section 143(2) after the assessee filed its return of income in response to the notice under Section 153C. The Tribunal relied on its prior decisions where it had quashed similar assessment orders for the same reason. Consequently, the assessment order was quashed. Since the assessee succeeded on this legal ground, the Tribunal deemed it unnecessary to adjudicate the other grounds challenging the additions on merits. Therefore, the appeals were allowed on this primary legal issue.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard appeals filed by Sunshine Deal Trade Private Limited (for AY 2015-16) and Hi Tech Power and Steel Limited (for AY 2013-14). Both assessees are challenging orders of the CIT(A) that upheld additions made by the Assessing Officer (AO). The proceedings were initiated under Section 153C of the Income Tax Act, 1961, following a search and seizure action on the Hi-tech group, which yielded documents related to the assessees. The AO issued notices under Section 153C and subsequently made additions under Section 69A and Section 68 of the Act, totaling Rs. 3,62,00,000/- for Sunshine Deal Trade Private Limited and Rs. 14,25,00,000/- for Hi Tech Power and Steel Limited. The assessees contended that the assessment proceedings were invalid.

What were the issues?

1. Whether the assessment order passed under Section 153C read with Section 143(3) is bad-in-law and void-ab-initio for not issuing the mandatory notice under Section 143(2) of the Act after the assessee filed a return in response to the Section 153C notice. Assessee's contention: The assessment is invalid as the mandatory notice under Section 143(2) was not issued after filing the return under Section 153C, rendering the entire assessment a nullity. They also argued that the notice under Section 143(2), if issued, was time-barred as per the proviso to Section 143(2) amended by the Finance Act, 2021. Revenue's contention: Not recorded in the judgment. 2. Whether the assessment order passed under Section 153C is bad-in-law due to mechanical approval under Section 153D and lack of signature as mandated by Section 282A. Assessee's contention: The approval under Section 153D was mechanical, non-speaking, and accorded without proper application of mind. The assessment order lacked manual or digital signatures as required by Section 282A. Revenue's contention: Not recorded in the judgment. 3. Whether the additions made under Section 69A and Section 68 are illegal in the absence of any incriminating material found as a result of the search. Assessee's contention: The additions under Section 69A and Section 68 were made without any incriminating material found during the search, making the assessment illegal and devoid of jurisdiction. For Hi Tech Power and Steel Limited, it was argued that the three limbs of Section 68 were discharged with documentary evidence.

Which sections of the Income-tax Act were involved?

Section 132,Section 153C,Section 143(3),Section 142(1),Section 127,Section 143(2),Section 68,Section 69A,Section 282A,Section 153D,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI R. K. PANDA & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Veekaas S Sharma, CA
For Respondent: Shri Rituparna Namdeo, CIT-DR

PER R.K. PANDA, VP:

ITA No.212/RPR/2026 filed by the assessee - Sunshine Deal Trade Private Limited is directed against the order dated 20.01.2026 of the Ld. CIT(A), Raipur-3 relating to assessment year 2015-16. ITA No.211/RPR/2026 filed by the assessee - Hi Tech Power and Steel Limited is directed against the order dated 16.01.2026 of the Ld. CIT(A), Raipur-3 relating to assessment year 2013-14. Since common grounds have been raised by the respective assessees in both the appeals, therefore, t

The order continues below.

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