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Issues involved:
The issues involved in the judgment are: 1. Whether the Tribunal was right in upholding the deletion of addition of Rs. 11,22,260 by the Commissioner of Income-tax (Appeals) without confronting the seized material to the assessee. 2. Whether the Tribunal was right in not appreciating the facts of the case correctly, rendering its order to be perverse. Issue 1: Deletion of Addition of Rs. 11,22,260: The appellant, the revenue, filed an appeal challenging the order of the Income-tax Appellate Tribunal, Amritsar Bench, which had deleted the addition of Rs. 11,22,260 made by the Assessing Officer on account of short-term capital gain. The Commissioner of Income-tax (Appeals) had held that the profit earned by the assessee on the sale of land was long-term capital gain, not short-term as assessed by the Assessing Officer. The Tribunal upheld the order of the CIT(A) based on the fact that the seized documents were not confronted to the assessee. The Tribunal's decision was supported by the judgment in the case of Kishinchand Chellaram v. CIT [1980] 125 ITR 713. The Tribunal found no legal infirmity in its view, as the Assessing Officer did not recover any document from the assessee or confront the seized material to the assessee. Therefore, the Tribunal's decision was upheld, and the appeal was dismissed. Issue 2: Appreciation of Facts by the Tribunal: The Tribunal's decision not to appreciate the facts of the case correctly was challenged by the revenue. However, the High Court found that there was no legal infirmity in the Tribunal's view. The Tribunal's decision was based on the fact that the seized material was not confronted to the assessee, as required by law. The High Court held that the Tribunal's decision was in line with the judgment of the Supreme Court in the case of Kishinchand Chellaram v. CIT [1980] 125 ITR 713. Therefore, the High Court concluded that there was no substantial question of law warranting admission of the appeal, and accordingly, the appeal was dismissed.
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