Opening paragraph...
Background & Facts
The Dispute
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The Legal Issue
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Arguments Presented
For the Appellant/Petitioner
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For the Respondent/State
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The Court's Analysis
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"The assets referred in the 4th proviso are the assets which are appearing on the right side of the balance sheet whereas the Assessing Officer is referring to unsecured loan and shares capital and share premium which is on the liability side of the balance sheet. In other words, the 4th proviso to Section 153A of the Act talks about the assets whereas the Assessing Officer has invoked the 4th proviso by referring to liabilities which is completely inverse of what is provided under the Act."
The Verdict
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What This Means For Similar Cases
Asset Definition Is Strictly Balance-Sheet-Oriented
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Prospective Application of the Extended Limitation Period
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Liability-Side Entries Cannot Trigger Reopening
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Case Details
Acit, Delhi vs Creamy Foods Ltd , Noida
Court
Income Tax Appellate Tribunal
Date
2026-09-10
Case Number
ITA Nos. 3334, 3335 & 3336/DEL/2026
Bench
Mahavir Singh, M. Balaganesh
Counsel
Pet: Zafarul Haque Tanweer
Res: Salil Agarwal, Shailesh Gupta, Madhur Agarwal
Frequently Asked Questions
It includes immovable property (land or building), shares and securities, loans and advances, and deposits in bank accounts.
No, the proviso applies prospectively, protecting assessments for years where the six-year period had already expired before 1 April 2021.
No, unsecured loans are liabilities and appear on the left side of the balance sheet; they do not satisfy the asset requirement under Explanation 2 to Section 153A(1).
