DCIT Vs Kota Dall Mill (Rajasthan High Court)
The Rajasthan High Court dismissed 18 Income Tax Appeals filed by the Revenue concerning the same group of assessees following search action conducted by the Revenue. The appeals challenged orders of the Income Tax Appellate Tribunal concerning additions made by the Assessing Officer under Section 68 of the Income Tax Act, 1961.
The Revenue raised five questions, primarily challenging deletion of additions relating to unexplained unsecured loans and partners’ capital receipts. It also questioned the ITAT’s finding that additions made during reassessment proceedings under Section 153A were unsustainable when based on information or reports of the Information Wing, Kolkata.
Read SC Judgment in this case: SC Dismisses SLP Against Deletion of Section 68 Unexplained Loan Additions
The Assessing Officer had made the additions, but the Commissioner (Appeals) deleted them. The ITAT dismissed the Revenue’s appeals, resulting in concurrent findings by the CIT (Appeals) and ITAT in favour of the assessees.
The High Court observed that, although five questions had been framed, the central issue was deletion of the Section 68 additions. On examining the ITAT’s order, the Court found that its conclusions were based on assessment of evidence on record and were therefore purely factual.
