IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessment year : 2015-16 Tapadia Constructions Ltd., PCIT (Central), Nagpur

1^st Floor, Tapadia Terraces, Adalat Vs.

Road, Aurangabad – 431001 PAN: AABCT0347F (Appellant) (Respondent)

Assessee by : Shri Shubham N. Rathi Department by : Shri Amit Bobde, CIT Date of hearing : 17-09-2025 Date of pronouncement : 12-11-2025

O R D E R

PER R.K. PANDA, V.P:

This appeal filed by the assessee is directed against the order dated

22.02.2024 passed u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Ld. PCIT(Central), Nagpur relating to assessment year 2015-16.

2. Facts of the case, in brief, are that the assesse is a private limited company engaged in the business of builders, developers, housing projects, hotel and sports club, investment / dealing in shares and securities. It had filed its original return of income on 30.09.2015 declaring total loss of Rs.26,06,750/-. The case was selected for scrutiny under CASS and the order u/s 143(3) of the Act was passed on 15.05.2017 assessing the total loss at Rs.23,50,420/- against the returned loss of Rs.26,06,750/-. A search action u/s 132 of the Act was conducted on 21.08.2018 at the business and residential premises of different members / associate concern of Tapadia group at Aurangabad and their family members and business concerns during which the assessee was also covered. In response to notice u/s 153A of the Act the assessee filed its return of income on 01.06.2020 declaring total loss at Rs.23,50,420/-. The Assessing Officer completed the assessment u/s 153A of the Act on 02.06.2021 determining the total income of the assessee at Rs.23,43,850/- wherein he had made addition of Rs.46,94,267/- u/s 43CA of the Act on the ground that there is a difference of Rs.46,94,267/- between the actual consideration of the land and the government valuation.

3. Subsequently, the Ld. PCIT perused the record and found that a valuation report was furnished by the Sub-Registrar, Jalna vide letter dated 30.04.2021, according to which, the valuation was given for land at Gut No.105, lands in 22 other Guts and also for buildings, plant and machinery on the above land. On perusal of the valuation report he noticed that the Registrar has given the valuation of buildings, godown, staff quarters, function hall, plant & machinery etc for assessment year 2015-16 at Rs.18,55,98,058/-. This valuation report is submitted by the Joint District Registrar i.e. Mudrank Zilhadhikari vide letter dated 30.04.2021 which is on record. However, the plant & machinery has been sold by the assessee at Rs.13,74,63,267/- (excluding VAT) as per the entry in the books of the assessee. This fact is also clear from the copy of the ledger of Arjun Sugar Industries Ltd., Jalna in the books of the assessee. Thus, there is a difference of Rs.4,81,34,791/- (Rs.18,55,98,058/- - Rs.13,74,63,267/-) between the fair market value of plant & machinery and the actual sale price of the machinery. The assessee company has sold the plant & machinery and buildings at less than the fair market value / government valuation. The aforesaid difference amount of Rs.4,81,34,791/- needs to be brought to tax accordingly. However, this issue has not been considered by the Assessing Officer while completing the assessment proceedings u/s 153A of the Act. He, therefore, was of the opinion that the omission on the part of the Assessing Officer to examine and conduct enquiry in respect of this specific issue has resulted in under-assessment of the income in the hands of the assessee for which the order passed u/s 153A of the Act on 02.06.2021 for assessment year 2015-16 is prima facie erroneous in so far as it is prejudicial to the interest of Revenue. He, therefore, issued a show cause notice asking the assessee to explain as to why the order passed u/s 153A of the Act should not be set aside as per provisi