DELHI HIGH COURT: ABHISAR BUILD WELL JUDGEMENT CANNOT BE CONSTRUCTED TO BE AN AUTHORITY TO OVERRIDE MANDATE OF SECTION 245-1

The Delhi High Court in the case Orchid Infrastructure Developers Pvt. Ltd. Versus PCIT observed and has held that the judgement Judgement passed by the Supreme Court of Abhisar Buildwell cannot be construed to be an authority to override the mandate of Section 245-1 of the Income Tax Act.

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The bench comprising of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav in the case observed that the Supreme Court judgement in the case of Abhisar Buildwell, wherein it is stated that the completed or unabated assessments can be re-opened by the Assessing Officer, AO in exercise of powers under Section 147 and Section 148 of the Income Tax Act, which being subject to fulfillment of the conditions mentioned under the provisions.

In the present case, the petitioner or assessee filed a return for the impugned AY 2007-08, wherein declaring the total income of Rs. 12.42 crore. Thus, the returned income was accepted, which being pursuant to the search conducted on the premises of Shri Hari Ram Group.

The court issued the notice under section 153 A and later, an assessment order was passed making additions. The assessee filed an appeal before CIT (A), who allowed the appeal in part by deleting the disallowance of interest.

Therefore, the assessee filed a settlement application under Chapter XIXA for Assessment Years 2007-08 to 2014-15.