PCIT Vs Smt Renu Agarwal (Allahabad High Court)
The Allahabad High Court considered the Revenue’s appeal under Section 260A of the Income Tax Act, 1961, challenging the Income Tax Appellate Tribunal, Lucknow Bench “SMC”, Lucknow order dated 17.01.2022 in ITA No.205 of 2020 for Assessment Year 2014-15.
The appeal concerned deletion of an amount added by the Assessing Officer on the allegation of penny stock. The respondent-assessee had succeeded against the assessment order before the CIT(A). The Revenue thereafter filed an Income Tax Appeal against the appellate order, which was dismissed by the ITAT.
Read SC Judgment in this case: SC Dismisses Penny Stock Tax Appeal, Keeps Question of Law Open
The High Court considered the findings recorded by the ITAT. The ITAT had noted that the CIT(A) had examined the basis of the Assessing Officer’s additions and, while granting relief to the assessee, specifically found no adverse comment in the form of a general or specific statement by the Principal Officer of the stock exchange or by the company whose shares were involved. The CIT(A) had also found that the Assessing Officer had referred to facts concerning various unrelated persons whose statements were recorded and had proceeded on unfounded presumptions.
