PCIT-1 Vs Sanjay Singh (Allahabad High Court)
Summary: The Revenue challenged under Section 260-A of the Income Tax Act, 1961 the ITAT Agra order dated 28.3.2025 for AY 2018-19. The Tribunal had dismissed the Revenue’s appeal against the CIT(A), who had found that in a best judgment assessment there was no legal sanction for a separate addition under Section 68. The Allahabad High Court noted that the finding of fact was based on due appraisal of the evidence on record and correct application of the principle in law. Finding no merit in the appeal, the High Court dismissed it and made no order as to costs.
Read SC Judgment in this case: SC Upholds No Separate Section 68 Addition in Best Judgment Assessment
Background of the Appeal
Present appeal has been filed under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) arising from the order dated 28.3.2025 passed by Income Tax Appellate Tribunal “DB” Bench, Agra in I.T.A. No. 181/Agr/2023 for A.Y. 2018-19.
The appeal arose from the order of the Commissioner of Income Tax (Appeals) dated 29.09.2023, whereby the Tribunal had confirmed the finding of fact recorded by the CIT (Appeals) that in a best judgement assessment there existed no legal sanction to allow for any separate addition under Section 68 of the Act.
Allahabad High Court’s Observations
The High Court heard Shri Amit Mahajan, learned counsel for the revenue and perused the record.
