PR. COMMISSIONER OF INCOME TAX-CENTRAL vs. VARAHA INFRA LIMITED

ITA/99/2018HC Rajasthan2026:RJ-JP:37219-DB06 August 2026Author: PUSHPENDRA SINGH BHATI, PRAVEER BHATNAGAR2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, having considered the joint request of the parties, decided to accede to the request for remand. The impugned order dated 08.12.2017 passed by the learned Tribunal, qua the questions of law, was quashed and set aside. The matter was remanded to the Assessing Officer for fresh adjudication of the two issues framed by the Court. The Assessing Officer is directed to decide the matter afresh after affording due opportunity of hearing to all concerned parties. The parties are directed to appear before the Assessing Officer on 07.09.2026 for further proceedings. The specific findings on the merits of the two substantial questions of law were not adjudicated upon as the matter was remanded.

What were the facts?

The appeal was filed by the Commissioner of Income Tax - Central, Jaipur (Revenue) against an order dated 08.12.2017 passed by the Income Tax Appellate Tribunal (ITAT). The assessee is Varaha Infra Limited. The appeal pertains to assessment proceedings where an addition of Rs. 25,75,00,000/- was made on account of share capital money, with the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) [CIT(A)] holding the transactions to be not genuine. The procedural history involves the High Court framing substantial questions of law. Subsequently, both the appellant and respondent jointly requested a remand to the Assessing Officer for fresh adjudication.

What were the issues?

The substantial questions of law framed by the High Court were: 1. Whether the learned ITAT has erred in setting aside the order passed by the CIT (A) affirming the order passed by the Assessing Officer sustaining the addition of Rs.25,75,00,000/- on account of share capital money, holding the transactions to be not genuine? 2. Whether the findings arrived at by the Assessing Officer affirmed by the CIT (A) stand vitiated on account of opportunity to cross-examine the witnesses being not extended to the assessee? Contentions: Assessee: Not recorded in the judgment. Revenue: Not recorded in the judgment. Both parties jointly submitted that the matter may be remanded to the Assessing Officer for afresh adjudication of both issues.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2026:RJ-JP:37219-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 99/2018 CNR: RJHC010194452018 | URN: ITA / 253U / 2018 Commissioner Of Income Tax - Central, Jaipur. ----Appellant Versus Varaha Infra Limited, 6, Jalam Vilas Scheme, Paota B Road, Jodhpur. ----Respondent For Appellant(s) : Mr. KK Bissa For Respondent(s) : Mr. Ravi Bhansali, Sr. Adv. assisted by Mr. Anjay Kothari, Dr. Mohit Singhvi, Mr. Utkarsh Bafna and Mr. Aman Khan HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MR. JUSTICE PRAVEER BHATNAGAR

Order 06/08/2026

The present Income Tax Appeal has been preferred seeking the following relief:- “It is, therefore, prayed that this appeal may kindly be allowed. By an appropriate order or direction the impugned order dated 08.12.2017 passed by the Tribunal may kindly be set aside and the order of AO as well as CIT(A) may kindly be restored and upheld.”

Vide order dated 26.03.2019, a Coordinate Bench of this Court framed the following substantial questions of law for consideration: “(1) Whether the learned ITAT has erred in setting aside the order passed by the CIT (A) affirming the order passed by the Assessing Officer sustaining the addition of Rs.25,75,00,000/- on account of share capital money, holding the transactions to be not genuine ? (Uploaded on 18/08/2026 at 03:21:14 PM) (Downloaded on 28/10/2026 at 12:41:11 AM)

[2026:RJ-JP:37219-DB] (2 of 2) [ITA-99/2018] (2) Whether the findings arrived at by the Assessing Officer affirmed by the CIT (A) stand vitiated on account of opportunity to cross-examine the witnesses being not extended to the assessee ?”

At the threshold, Mr. KK Bissa, learned counsel for the appellant and Mr. Ravi Bhansali, learned Senior Advocate appearing for the respondent, assisted by Mr. Anjay Kothari, Dr. Mohit Singhvi, Mr. Utkarsh Bafna and Mr. Aman Khan, jointly submit that the matter may be remanded to the Assessing Officer for afresh adjudication of both the aforesaid issues, strictly in accordance with law.

Having considered the joint request made on behalf of the parties and, in view of the substantial questions of law already framed by this Court, this Court deems it appropriate to accede to the said request. Accordingly, the present Income Tax Appeal is disposed of by quashing and setting aside the impugned order dated 08.12.2017 passed by the learned Tribunal qua the questions of law and remanding the matter to the Assessing Officer for fresh adjudication of the two issues reproduced above, strictly in accordance with law. The Assessing Officer shall decide the matter afresh after affording due opportunity of hearing to all concerned parties.

The parties shall appear before the Assessing Officer on 07.09.2026 for further proceedings. (PRAVEER BHATNAGAR),J (DR.PUSHPENDRA SINGH BHATI),J 72-Nirmala/- Powered by TCPDF (www.tcpdf.org) (Uploaded on 18/08/2026 at 03:21:14 PM) (Downloaded on 28/10/2026 at 12:41:11 AM)

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