Rajnandani Projects Pvt. Ltd. Vs PCIT (Patna High Court)
Patna High Court held that ITAT was not justified in reversing the order of CIT(A) without demonstrating any perversity, misreading of evidence, or application of an incorrect legal standard by the appellate authority. Accordingly, deletion of addition u/s. 68 by CIT(A) justified and writ allowed.
Facts- During the course of assessment, AO issued notices u/s. 142(1) along with a questionnaire, and thereafter issued notices u/s. 133(6) and summons u/s. 131 of the Act, calling for confirmation and verification regarding the amount of Rs. 1,91,00,000/-, received by the appellant during the relevant financial year from M/s Champion Group of Companies. AO treated the aforesaid amount as unexplained cash credit u/s. 68 of the Act and completed the assessment by order dated 31.12.2017 u/s. 143(3).
CIT(A) deleted the addition. Tribunal restored the addition. Being aggrieved, assessee has preferred the present writ.
Conclusion- Upon consideration of the material available on record, the findings recorded by the Commissioner of Income Tax (Appeals), and the reasoning adopted by the Income Tax Appellate Tribunal, this Court is of the considered view that the Tribunal was not justified in reversing the order passed by the Commissioner of Income Tax (Appeals) without demonstrating any perversity, misreading of evidence, or application of an incorrect legal standard by the appellate authority.
