Case Law Details
PCIT Vs Sidhi Vinayak Aromatics Pvt Ltd (Delhi High Court)
Introduction: The Delhi High Court recently delivered a significant judgment in the case of PCIT vs. Sidhi Vinayak Aromatics Pvt Ltd, addressing the legality of additions made under section 153C of the Income Tax Act. The core issue revolved around the absence of incriminating material during a tax search. In this article, we delve into the details of the case, the court’s analysis, and the implications of the judgment.
1. Background of the Case: The appeals in question pertain to Assessment Year (AY) 2006-07 and AY 2005-06. The appellant, the income tax department, challenged the order issued by the Income Tax Appellate Tribunal, commonly known as the Tribunal, on 07.12.2017.
2. The Tribunal’s Verdict: The Tribunal addressed the appeals and cross-objections filed by the income tax department and the taxpayer (assessee) against the order of the Commissioner of Income Tax (Appeals) dated 25.03.2011. The crux of the matter hinged on a significant legal issue.
3. No Incriminating Material Found: A pivotal finding by the Tribunal was that in the AYs in question, where the assessments were completed, no incriminating material was discovered during the course of a search. This crucial fact is documented in paragraph 10 of the Tribunal’s order.
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