2015 (9) TMI 115 - HC - Income Tax

Delhi HC rejects Revenue's appeal on ITAT order adding income under Section 68

The Delhi HC dismissed Revenue's appeal against an ITAT order adding Rs. 89 lacs under Section 68 of the Income Tax Act for Assessment Year 2002-03. No ... Addition under Section 68 on bogus share capital - whether there was any incriminating material whatsoever found during the search to justify initiation of proceedings under Section 153A? - CIT(A) deleted the addition - Held that:- Order of the CIT(Appeals) correctly 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. - Decided against revenue. The Delhi High Court dismissed the Revenue's appeal against an ITAT order regarding the addition of Rs. 89 lacs under Section 68 of the Income Tax Act, 1961 for the Assessment Year 2002-03. The Court found no incriminating evidence related to share capital during a search, leading to the conclusion that the AO was not justified in invoking Section 68. The Court held that no substantial question of law arose in the ITAT order, and thus, the appeal was dismissed.