Delhi H.C : No incriminating evidence related to share capital issued was found during the course of search as is manifest from the order of the AO

High Court Of Delhi

Pr.CIT vs. Kurele Paper Mills P. Ltd.

Section 68, 153A

Asst. Year 2002-03

S.Muralidhar & Vibhu Bakhru, JJ

ITA No. 369/2015

6th July, 2015

Counsel appeared:

Suruchi Agarwal, Sr. Std. Counsel, Lakshmi Guruag, Jr. Std.

Counsel for the Appellant:

ORDER:

The Revenue has filed the appeal against an order dated 14.11.2014 passed by the Income Tax Appellate Tribunal (ITAT) in 3761/Del/2011 pertaining to the Assessment Year 2002-03. The question was whether the learned CIT (Appeals) had erred in law and on the facts in deleting the addition of Rs.89 lacs made by the Assessing Officer under Section 68 of the Income Tax Act, 1961 (‘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.

The Court finds that the order of the CIT(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 AO.” Consequently, it was held that the AO was not justified in invoking Section 68 of the Act for the purposes of making additions on account of share capital.

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 ITAT which requires examination.

The appeal is, accordingly, dismissed.

[Citation : 380 ITR 571]