PCIT Vs Alishan Steels Pvt Ltd (Calcutta High Court)
The Calcutta High Court has dismissed an appeal filed by the Income Tax Department against Alishan Steels Pvt Ltd, affirming the Income Tax Appellate Tribunal’s decision to delete an addition of Rs. 6,00,00,000 under Section 68 of the Income Tax Act, 1961. The amount was categorized as unexplained cash credit from share capital and share premium.
Despite a significant delay of 1132 days in filing the appeal, the High Court condoned it to examine the substantial question of law. However, after hearing arguments, the court concluded that the question had to be answered against the revenue. The decision was made in line with the court’s earlier ruling in Principal Commissioner of Income Tax 1, Kolkata vs. M/s Abhijeet Enterprise Ltd. (ITAT/187/2023, dated November 17, 2023). Consequently, the appeal by the Income Tax Department was dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
We have heard learned Counsel on either side.
It appears that there is a delay of 1132 days in filing the appeal, though the explanation offered is not fully satisfactory, since this appeal has been filed under Section 260A of the Income Tax Act, we are required to examine as to whether any substantial questions of law arise for consideration. Therefore, we exercise discretion and condone the delay in filing the appeal. The application is allowed.
