PCIT (Central) Vs Tarun Devcon (P) Ltd. (Madhya Pradesh High Court)
The Madhya Pradesh High Court dismissed the Revenue’s appeal filed under Section 260A of the Income Tax Act, 1961, challenging the Income Tax Appellate Tribunal, Jabalpur order dated 23 November 2023 in ITA No.49/JAB/2018 for Assessment Year 2014-15. The ITAT had annulled the assessment framed under Section 143(3) and deleted the addition of Rs.2.88 crore made under Section 68 on account of an unsecured loan from M/s Little Star Securities Pvt. Ltd.
The Revenue proposed several substantial questions of law concerning whether the assessment should have been framed under Section 153C, the nature of the seized material, the requirement of incriminating material and satisfaction for invoking Section 153C, and the deletion of the Section 68 addition. The Revenue also questioned the ITAT’s findings concerning the lender and relied upon the Supreme Court decision in Abhisar Buildwell P. Ltd. and the decision in Sudarshan Silk and Sarees.
The High Court noted that a similar issue had already been considered by it in ITA No.113/2024, Pr. Commissioner of Income Tax (Central) Vs. Shri Kalyanika Infra Mega Ventures Pvt. Ltd. By order dated 28 August 2024, the Court had dismissed that appeal. Following that decision, the High Court dismissed the present appeal as well and directed that the earlier order dated 28 August 2024 would apply mutatis mutandis to the facts and circumstances of the present case. A complete copy of that earlier order was directed to be placed on the record.
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