No Substantial Question of Law Arose If Order of CIT(A) Was Never Contested on Merit By Revenue | HC
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Case Details: Principal Commissioner of Income-tax, (Central) vs. Arora Iron & Steel Rolling Mills (P.) Ltd. - [2024] 158 taxmann.com 29 (Punjab & Haryana)
Judiciary and Counsel Details
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- G.S. Sandhawalia & Ms Harpreet Kaur Jeewan, JJ.
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Ms Gouri Neo Rampal, Sr. Standing Counsel for the Appellant.
Facts of the Case
Assessing Officer (AO) made additions to the assessee’s income in respect of unsecured loans and unverifiable purchases. However, the CIT(A) deleted the additions made by the AO. On appeal, the Tribunal upheld the order of CIT(A).
Aggrieved by the order, the AO filed an appeal before the Punjab and Haryana High Court.
High Court Held
The High Court held that the AO had taken the shorter route of considering the purchases to be bogus merely on the basis of non-response verification letters issued under the provisions of section 133(6). Resultantly, CIT(A) set aside the action of the AO since there was already specific material adduced by the assessee .
AO’s comments in the order of the assessment, at one place, stated that the return of income was not legible and the bank statement was difficult to read and resultantly concluded that the creditworthiness and genuineness of the transaction were not proved. Similar observations have also been made for rejecting the entries without any reasons given.
The CIT(A) allowed the appeal, and the order of CIT(A) was never contested on merits before the Tribunal but only on the technicality that additional evidence was produced, which did not come forth from the facts and circumstances, and neither was any material produced.
Accordingly, the substantial questions of law were not made out, and the appeal was to be dismissed.
List of Cases Reviewed
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- Order of ITAT in IT Appeal Nos. 1291 and 1292 (CHD) of 2019, dated 24-5-2021 (para 10) affirmed.
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