2013 (2) TMI 798 - HC - Income Tax

Summary

Issues involved: Appeal against the judgment and order of the Income Tax Appellate Tribunal regarding substantial questions of law.

Issue (i): The decision of the ITAT on the addition of Rs. 23,58,118 back to the file of the Assessing Officer.

The ITAT's decision to set aside the CIT(A)'s order and restore the issue without pointing out any specific deficiency was challenged. The ITAT's direction to add peak debit balance and allow netting was also questioned. The High Court noted that the Tribunal remanded two issues for fresh consideration, granting a second inning to the assessee on the first issue with significant revenue implications. The Court found that the Tribunal provided proper reasons for remanding the matter, leading to the dismissal of the Tax Appeal.

Issue (ii): The addition of Rs. 3,29,264 made in respect of unaccounted investment in gold.

The ITAT's decision to restore the issue to the AO was challenged based on the lack of evidence supporting the assessee's contention during the search. The High Court observed that the ITAT acknowledged the absence of evidence and statements from lady members regarding the ornaments at the business premises. Ultimately, the Court found that the Tribunal's decision to remand the issue did not give rise to any question of law, leading to the dismissal of the Tax Appeal.

Issue (iii): The addition made on account of bank deposits and the benefit of telescoping in recurring deposit accounts.

The ITAT's direction to give the benefit of telescoping in respect of recurring deposit accounts and restore the issue of Rs. 2,39,028 made on bank deposits to the AO was questioned. The High Court noted that the Tribunal remanded two issues for fresh consideration, including this one. The Court found that the Tribunal's decision to remand the matter was supported by proper reasons, leading to the dismissal of the Tax Appeal.