Divine Infracon Pvt Ltd Vs PCIT 3 (Delhi High Court)
Delhi High Court held that ITAT cannot address the ground which remained unaddressed by CIT(A). Accordingly, matter restored back to CIT(A) to decide on the grounds that were not decided.
Facts- The Assessee has engaged in the business of real estate development and running of hotels. A search and seizure operations under Section 132/133A of the Act were conducted by the concerned Income Tax Authorities in certain premises in connection with ‘Jagat Group of cases, it’s directors and other individuals and associates’. AO assessed the Assessee’s total income for AY 2009-10 at ₹4,30,00,000/- as against NIL income declared by the Assessee.
AO had determined that the said entries were accommodation entries from entities managed by Jain Brothers, who were engaged in the business of providing accommodation entries. Accordingly, the AO added of a sum of ₹4,30,00,000/- under Section 68 of the Act on account of unexplained cash credits to the income declared by the Assessee and, accordingly, framed the assessment order.
CIT(A) allowed the appeal stating that the provisions of Section 153A of the Act were inapplicable as no incriminating material had been found during the search proceedings. ITAT allowed the appeal of the revenue. Being aggrieved, the present appeal is filed.
