PCIT-1 Vs Sanjay Singh (Allahabad High Court)
Summary: The Revenue challenged under Section 260-A of the Income Tax Act, 1961 the ITAT Agra order dated 28.3.2025 for AY 2018-19. The Tribunal had dismissed the Revenue’s appeal against the CIT(A), who had found that in a best judgment assessment there was no legal sanction for a separate addition under Section 68. The Allahabad High Court noted that the finding of fact was based on due appraisal of the evidence on record and correct application of the principle in law. Finding no merit in the appeal, the High Court dismissed it and made no order as to costs.
Read SC Judgment in this case: SC Upholds No Separate Section 68 Addition in Best Judgment Assessment
Background of the Appeal
Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) arising from the order dated 28.3.2025 passed by Income Tax Appellate Tribunal “DB” Bench, Agra in I.T.A. No. 181/Agr/2023 for A.Y. 2018-19.
The appeal arose from the order of the Commissioner of Income Tax (Appeals) dated 29.09.2023, whereby the Tribunal had confirmed the finding of fact recorded by the CIT (Appeals) that in a best judgement assessment there existed no legal sanction to allow for any separate addition under Section 68 of the Act.
Allahabad High Court’s Observations
The High Court heard Shri Amit Mahajan, learned counsel for the revenue and perused the record.
The Court observed that the finding of fact recorded by the CIT (Appeals), as confirmed by the Tribunal, was based on due appraisal of evidence on record and on correct application of principle in law.
The Court therefore found no merit in the present appeal.
Decision of the Allahabad High Court
Accordingly, the present appeal was dismissed. The Court made no order as to costs.
The order concerns a best judgement assessment and a separate addition under Section 68. TaxGuru has also published material concerning Section 68 additions.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Amit Mahajan, learned counsel for the revenue and perused the record.
2. Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) arising from the order dated 28.3.2025 passed by Income Tax Appellate Tribunal “DB” Bench, Agra in I.T.A. No. 181/Agr/2023 for A.Y. 2018-19. By that order, the Tribunal has dismissed revenue’s appeal arising from the order of Commissioner of Income Tax (Appeals) dated 29.09.2023 whereby the learned Tribunal has confirmed the finding of fact recorded by the CIT (Appeals) that in a best judgement assessment there existed no legal sanction to allow for any separate addition under Section 68 of the Act.
3. To the extent the finding of fact recorded by the CIT (Appeals) as confirmed by the Tribunal are based on due appraisal of evidence on record and on correct application of principle in law, we find no merit in the present appeal.
4. Accordingly, the present appeal is dismissed. No order as to costs.
