Section 68 Additions Raise No Substantial Question of Law: Calcutta HC

PCIT Vs Shelter Infra Projects Ltd. (Calcutta High Court)

Additional Evidence Before ITAT Is Legally Permissible: Calcutta HC Upholds Deletion of ₹25.40 Crore Section 68 Addition

Revenue’s Appeal Involved Only Questions of Fact

In Principal Commissioner of Income Tax-2, Kolkata v. Shelter Infra Projects Ltd., ITAT No. 84 of 2026, judgment dated 22.09.2026, the Calcutta High Court upheld the order of the Kolkata ITAT deleting additions of ₹6.27 crore and ₹19.13 crore under section 68. The Court held that the Tribunal had examined the documents and additional evidence placed before it, recorded detailed factual findings and provided adequate reasons for accepting the genuineness of the transactions. Since the Revenue could not establish any perversity in those findings, no substantial question of law arose under section 260A.

The Revenue’s appeal had been filed with a delay of 393 days. The High Court found sufficient cause and condoned the delay. However, after examining the questions proposed by the Revenue, the Court found that they were essentially questions of fact and dismissed the appeal without even calling upon the assessee to address arguments at that stage.

Second Round of Litigation After De Novo Assessment

The assessee had filed its return for AY 2012-13 declaring nil income. The original assessment was completed under section 143(3), determining the income at ₹33,00,66,403. Thereafter, the Principal Commissioner exercised revisional jurisdiction under section 263, and the assessed income was revised to ₹33,11,79,425.