THE COMMISSIONER OF INCOME TAX XIII vs. KHETWANI BROTHERS

ITA - 784 / 2008HC Delhi11 July 20081 pages

For Petitioner: MR.SANJEEV SABHARWAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that the conclusions reached by the Income Tax Appellate Tribunal were pure findings of fact. Specifically, the Tribunal had upheld the Commissioner of Income Tax (Appeals)'s deletion of an addition of Rs. 5,02,160/-. This decision was based on the Tribunal's finding that the assessee had surrendered Rs. 21,71,958/- in the block return, representing cash found during a search, and that the benefit of telescoping should be granted to the assessee even if the transactions were not recorded in the books of accounts. The High Court found that no question of law, let alone a substantial question of law, arose for consideration. Therefore, the appeal was dismissed.

What were the facts?

This appeal concerns the block period from April 1, 1996, to April 18, 2002. The Income Tax Appellate Tribunal (ITAT) considered submissions and facts, concluding that the assessee had surrendered Rs. 21,71,958/- in the block return, representing cash found during a search. The Commissioner of Income Tax (Appeals) had observed that even if transactions were not recorded in the books, the assessee should receive the benefit of telescoping. Consequently, the ITAT upheld the CIT(A)'s order deleting an addition of Rs. 5,02,160/-. The High Court noted these were findings of fact.

What were the issues?

1. Whether a substantial question of law arises for consideration in this appeal, given the findings of fact by the Tribunal. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The High Court's observation that the findings of the Tribunal were pure findings of fact implies that the assessee likely argued that no substantial question of law was involved. Revenue's Contention: The revenue, represented by Mr. Sanjeev Sabharwal, appealed the ITAT's decision. The High Court's dismissal of the appeal indicates that the revenue's arguments, if any, were not found to raise a substantial question of law. The judgment does not explicitly detail the revenue's arguments beyond the fact that they are the appellant challenging the ITAT's order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 11.07.2008 . Present: Mr Sanjeev Sabharwal for the Appellant. . + ITA 784/2008 . . . This appeal is in respect of the block period 01.04.1996 to 18.04.2002. The Tribunal, after considering the submissions made by the parties and the facts of the case, came to the conclusion that the assessee had surrendered an amount of Rs 21,71,958/- in the block return representing cash found during search action and that the Commissioner of Income Tax (Appeals) had rightly observed that even if the transactions on which the additions have been made were not recorded in the books of accounts, the assessee had to be given the benefit of telescoping. Consequently, the Tribunal upheld the order of the Commissioner of Income Tax (Appeals) deleting the addition of Rs 5,02,160/-. These are pure findings of fact. No question of law, much less a substantial question of law arises for consideration. The appeal is dismissed. . . BADAR DURREZ AHMED, J . . . RAJIV SHAKDHER, J July 11, 2008 SR . 26

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