SHIMLA HILLS CONSTRUCTION,SHIMLA vs. DCIT, CENTRAL CIRCLE SHIMLA, SHIMLA

ITA 231/CHANDI/2025Status: DisposedITAT Chandigarh16 March 2026AY 2013-14Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)5 pages
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What did the Tribunal hold?

The Tribunal held that the additions were not based on any incriminating material found during the search, making them unsustainable. The AO had incorrectly treated the assessment as a regular assessment under Section 143(3), despite the original return having attained finality, and the time limit for regular assessment under Section 143(2) had expired.

What were the facts?

A search under Section 132(1) was conducted on the assessee, after which the AO issued a notice under Section 153A and made three additions concerning contract receipts, discrepancy in transfer of assets to a retiring partner, and sub-contractor charges without TDS. The assessee had filed its return of income, which matched its original return under Section 139(1).

What were the issues?

Whether additions made under Section 153A, in the absence of incriminating material discovered during a search, are valid, particularly when the period for regular assessment had already elapsed.

Which sections of the Income-tax Act were involved?

Section 132(1),Section 153A,Section 139(1),Section 143(3),Section 143(2)

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Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Besar Singh Verma, Advocate &, Shri Aman Singhi, CA
For Respondent: Shri Abhishek Pal Garg, CIT DR
Hearing: 09.02.2026Pronounced: 16.03.2026

PER RAJPAL YADAV, VP

The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 23.12.2024 passed for assessment year 2013-14. 2. The assessee has taken three substantial grounds of appeal wherein it has pleaded that ld.CIT (Appeals) has A.Y.2013-14 2

erred in confirming the addition of Rs.9,40,781/-, Rs.3,99,178/- and Rs.15,94,975/-.

2.1.

The ld. counsel for the assessee has raised an additional ground of appeal whe

The order continues below.

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