C.I.T. UDAIPUR vs. M/S VINAYAK BUILD DEV. PVT. LTD.

ITA/116/2014HC RajasthanRJHC01020937201406 January 2015Author: GOVIND MATHUR,ANUPINDER SINGH GREWAL2 pages

AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the findings of the Commissioner of Income Tax (Appeals) were pure findings of fact. The Tribunal reasoned that the CIT(A)'s conclusions, which were upheld, were based on the examination of the facts of the case, including the management of the company by M/s. Sharma Builders and Shri Lalit Sharma, the absence of assessee representatives during assessment, and the production of various supporting documents by the assessee. The Tribunal concluded that these findings did not involve any substantial question of law that warranted adjudication by the High Court. Consequently, the appeal preferred by the Revenue was dismissed.

What were the facts?

The Revenue, Commissioner of Income Tax, Udaipur, preferred this appeal challenging the judgment dated 18.11.2013 of the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The ITAT had rejected the Revenue's appeal against an order passed by the Commissioner of Income Tax (Appeals), Udaipur. The Assessing Officer had made certain additions during a search and seizure in the assessee's office, M/s. Vinayak Build Dev. Pvt. Ltd., Udaipur. The assessee appealed to the CIT(A), who deleted all additions. The Revenue contended that the assessee failed to substantiate its accounts with adequate documentary evidence. The ITAT noted that M/s. Sharma Builders and Shri Lalit Sharma managed the company's daily affairs, and no one from the assessee company was present during assessment proceedings. The ITAT also found that the assessee had produced various documents to support its claims.

What were the issues?

1. Whether the ITAT erred in holding that the findings of the CIT(A) were pure findings of fact and did not involve any substantial question of law, thereby dismissing the Revenue's appeal? (Question of law) Contentions: Assessee: The judgment does not record any specific contentions made by the assessee before the ITAT. However, the fact that the CIT(A) deleted the additions and the ITAT upheld this deletion implies the assessee argued successfully that the additions were unjustified and its claims were substantiated. Revenue: The Revenue contended that the assessee failed to substantiate its accounts by adequate documentary evidence, and therefore, the deletion of additions by the CIT(A) was incorrect. The Revenue likely argued that the ITAT should have considered these points as substantial questions of law.

AI-generated summary — verify with the full judgment below

1 D.B. INCOME TAX APPEAL NO.116/2014 Commissioner of Income Tax, Udaipur Vs. M/s. Vinayak Build Dev. Pvt. Ltd., Udaipur DATE OF ORDER : 06.1.2015 HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MR. JUSTICE ANUPINDER SINGH GREWAL Mr. K.K. Bissa, for the appellant ... This appeal is preferred to question correctness of the judgment dated 18.11.2013 passed by the learned Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur rejecting the appeal preferred by the Revenue giving challenge to the order passed by the learned Commissioner of Income Tax (Appeals), Udaipur. Suffice to mention that the Assessing Officer found certain discrepancies while making a search and seizure in the office of the assessee. The assessee challenged the same by way of filing an appeal before the Commissioner of Income Tax. The Commissioner of Income Tax deleted all the additions made by the Assessing Officer. The Revenue assailed correctness of deletion of the additions so made with assertion that the assessee failed to substantiate its accounts by adequate documentary evidence. The learned ITAT after examining all facts of the case arrived at the conclusion that M/s. Sharma Builders and Shri Lalit Sharma were looking after day to day affairs of the company and no one from the assessee company was available at the site at the time of assessment

2 proceedings conducted. The ITAT also arrived at the conclusion that the assessee produced various documents in support of its claims. The findings arrived by the CIT are pure findings of facts and those do not involve any substantial question of law that may demand adjudication by this Court.

The appeal is dismissed accordingly. [ANUPINDER SINGH GREWAL], J. [GOVIND MATHUR], J. Sanjay

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