Principal Commissioner Of Income-Tax v. Kurele Paper Mills P. Ltd.

1. The Revenue has filed the appeal against an order dated November 14, 2014, passed by the Income-tax Appellate Tribunal (“the ITAT”) in 3761/Del/2011 pertaining to the assessment year 2002-03. The question was whether the learned Commissioner of Income-tax (Appeals) had erred in law and on the facts in deleting the addition of Rs. 89 lakhs made by the Assessing Officer under section 68 of the Income-tax Act, 1961 (“the Act”) on bogus share capital. But the issue was whether there was any incriminating material whatsoever found during the search to justify initiation of proceedings under section 153A of the Act.

2. The court finds that the order of the Commissioner of Income-tax (Appeals) reveals that there is a factual finding that “no incriminating evidence related to share capital issued was found during the course of search as is manifest from the order of the Assessing Officer”. Consequently, it was held that the Assessing Officer was not justified in invoking section 68 of the Act for the purposes of making additions on account of share capital.

3. As far as the above facts are concerned, there is nothing shown to the court to persuade and hold that the above factual determination is perverse. Consequently, after considering all the facts and circumstances of the case, the court is of the opinion that no substantial question of law arises in the impugned order of the Income-tax Appellate Tribunal which requires examination.

4. The appeal is, accordingly, dismissed.