2012 (1) TMI 395 - HC - Income Tax

Summary

Issues: The issues involved in the judgment are (a) deletion of addition made by A.O. u/s 68 of the Income Tax Act, 1961 on account of sale of shares and (b) deletion of addition made by AO on account of gifts received.

Deletion of Addition u/s 68 - Sale of Shares:
The assessment year in question is A.Y. 2005-06. The Tribunal affirmed the deletion of addition made by A.O. of Rs. 2,18,24,010/u/s 68 of the Income Tax Act, 1961 on account of sale of shares of Talent Infoway Ltd. The Counsel for the Revenue conceded before the ITAT that the issue is covered against the Revenue by a previous decision of the Court. As the decision was based on this concession, the Court held that this question cannot be entertained, and the Revenue may pursue other legal remedies.

Deletion of Addition - Gifts Received:
Regarding the addition made by AO on account of gifts received, the Tribunal found the gifts to be genuine based on specific reasons recorded in its order. The Tribunal's decision was based on a factual finding, and therefore, the Court held that this question cannot be entertained. Consequently, the Court dismissed the Appeal.

This judgment highlights the importance of legal precedents and factual findings in tax matters, emphasizing the need for parties to present strong legal arguments and evidence to support their case before the Tribunal.