2023 (11) TMI 657 - HC - Income Tax

Addition u/s 69 - unexplained investments made in the JP Minda Group of companies - addition in the hands of respondent/assessee was made on a protective basis and substantive addition had been made in the hands of the JP Minda Group - HELD THAT - The sum and substance of the judgment 2022 (9) TMI 1330 - DELHI HIGH COURT passed by a coordinate bench was that the substantive addition made in the hands of the JP Minda Group was dropped, albeit, on merits. Revenue, correctly points out that the addition was dropped on the basis of a judgment passed by a coordinate Bench of this court in Commissioner of Income Tax vs. Kabul Chawla 2015 (9) TMI 80 - DELHI HIGH COURT To be noted, the said judgment has been affirmed by the Supreme Court in Principal Commissioner of Income Tax vs. Abhisar Buildwell 2023 (4) TMI 1056 - SUPREME COURT Tribunal dismissed the appeal preferred by the appellant/revenue, having regard to the fact that the substantive addition on merits was dropped. As indicated above, the addition in the hands of the respondent/assessee was only made on a protective basis. In these circumstances, we are of the view that no substantial question of law arises for consideration by this court.

Summary

Issues involved:
The appeal concerns Assessment Year (AY) 2010-11, where the appellant/revenue seeks to challenge the order passed by the Income Tax Appellate Tribunal. The Tribunal examined the sustainability of the order passed by the Commissioner of Income Tax (Appeals) concerning AYs 2010-11 to 2012-13.

Merits Issue:
The main issue raised before the Tribunal was whether the Commissioner of Income Tax (Appeals) erred in deleting the addition made under Section 69 of the Income Tax Act, 1961, on account of unexplained investments made by the appellant/respondent in the JP Minda Group of companies. The aggregate amount invested was Rs. 4,05,00,000, and the addition in the hands of the respondent/assessee was made on a protective basis, with the substantive addition made in the hands of the JP Minda Group.

Judgment Details:
A coordinate bench had previously addressed the challenge concerning the JP Minda Group in a judgment dated 26.09.2023, where the substantive addition made in the hands of the JP Minda Group was dropped on merits. The addition was dropped based on a judgment passed by a coordinate Bench of the court in Commissioner of Income Tax vs. Kabul Chawla, which was affirmed by the Supreme Court in Principal Commissioner of Income Tax vs. Abhisar Buildwell. The Tribunal dismissed the appeal by the appellant/revenue since the substantive addition on merits was dropped, and the addition in the hands of the respondent/assessee was only made on a protective basis.

Conclusion:
Considering that no substantial question of law arises for consideration by the court in these circumstances, the appeal was closed accordingly.