Case Law Details
PCIT Vs Electrical And Electronic India Ltd. (Delhi High Court)
Delhi High Court Dismisses Revenue’s Appeal Against Protective Basis Addition in PCIT vs. Electrical and Electronic India Ltd.
Introduction: The Delhi High Court recently dismissed an appeal by the revenue against the order dated 18.04.2023 passed by the Income Tax Appellate Tribunal (Tribunal) concerning the Assessment Year (AY) 2010-11. The appeal challenged the Commissioner of Income Tax (Appeals) (CIT(A))’s decision on AYs 2010-11 to 2012-13, specifically addressing the deletion of additions under Section 69 of the Income Tax Act, 1961, related to unexplained investments in the JP Minda Group of companies.
Background: The issue revolved around an aggregate investment of Rs. 4,05,00,000 made by the appellant/respondent in the JP Minda Group. Notably, the addition in the hands of the respondent/assessee was made on a protective basis, with the substantive addition being made in the hands of the JP Minda Group.
Legal Proceedings: The Tribunal, in its order, took into consideration a judgment dated 26.09.2023 by a coordinate bench. This judgment, relating to a bunch of appeals including ITA 358/2022 (Pr. Commissioner of Income Tax (Central)-2 vs. M/s JPM Tools Ltd.) and ITA 360/2022 (Pr. Commissioner of Income Tax (Central)-2 vs. Jay FE Cylinder Ltd.), concluded that the substantive addition made in the hands of the JP Minda Group was dropped on merits.
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