PCIT Vs Zulu Merchandise Pvt Ltd (Calcutta High Court)
The Calcutta High Court dismissed the Income Tax Department’s appeal in the case of PCIT vs. Zulu Merchandise Pvt Ltd, addressing the challenge against an ITAT order. The appeal, which faced a 138-day delay, was allowed for consideration of the delay. The main issue was whether the ITAT correctly removed a Rs. 10,51,200 addition for bogus losses on share sales, arguing that the assessee had not proven shareholder identities, creditworthiness, or transaction genuineness. However, the Court found that the ITAT’s decision was based on the limitation issue alone, which was the sole focus of the Tribunal’s review. Consequently, the High Court concluded that the substantial legal questions raised by the revenue did not arise from the Tribunal’s order. As a result, the appeal was dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
The Court:- We have heard learned Advocates on either side.
There is a delay of 138 days in filing the appeal. As we are satisfied with the reasons given, the delay in filing the appeal is condoned. GA/ 1/2024 is allowed.
This appeal by the Income Tax Department filed under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated July 11, 2023 passed by the Income Tax Appellate Tribunal, “C” Bench, Kolkata in ITA/380/KOL/2023 for the assessment year 2012-2013.
