Facts of the Case

The Revenue preferred an appeal before the Income Tax Appellate Tribunal against the order passed by the Commissioner of Income Tax (Appeals), which had granted relief to the assessee. The dispute pertained to additions made by the Assessing Officer during assessment proceedings.

Issues Involved

  1. Whether the relief granted by the CIT(A) was justified on facts and law.
  2. Whether the additions made by the Assessing Officer were sustainable.
  3. Scope of appellate interference by the Tribunal.

Petitioner’s Arguments (Revenue)

  • The Revenue contended that the CIT(A) erred in deleting or reducing additions made by the Assessing Officer.
  • It was argued that the assessment order was passed after due consideration of material on record.
  • The Department sought restoration of the additions.

Respondent’s Arguments (Assessee)

  • The assessee supported the order of the CIT(A).
  • It was contended that the additions were arbitrary and not supported by evidence.
  • The assessee argued that proper relief had rightly been granted by the appellate authority.

Court Order / Findings (ITAT)

  • The Tribunal examined the assessment order, appellate order, and material placed on record.
  • It evaluated whether the findings of the CIT(A) suffered from any legal or factual infirmity.
  • Based on its analysis, the Tribunal adjudicated the issues and passed appropriate directions regarding the additions disputed by the Revenue.

Important Clarification

  • The Tribunal acts as the final fact-finding authority under the Income-tax Act.
  • Relief granted by CIT(A) can be interfered with only where findings are perverse or contrary to law.
  • Proper evaluation of evidence is central to sustainability of additions.

Link to download the order - https://itat.gov.in/public/files/upload/1622715690-smt.%20Jaishree%20Jaiswal..pdf

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