HC Dismisses Revenue Appeal, Says No Substantial Question of Law Where No Incriminating Material Found

The Revenue filed an appeal challenging the order of the ITAT, which had upheld the deletion of a substantial addition made under Section 153A of the Income Tax Act for A.Y. 2013-14 in the case of the assessee, Dilip B. Jiwarajka. The Assessing Officer had made multiple additions after a search action, alleging that incriminating material was found.

The assessee successfully challenged the additions before the Commissioner of Income Tax (Appeals), and the relief was affirmed by the ITAT. The assessee’s brother, who was subjected to the same search and similar additions under Section 153A, had also succeeded before the CIT(A) and ITAT. The Revenue’s appeal in the brother’s case had already been dismissed by the High Court on the ground that no substantial question of law arose.

Issue Before Court: Whether any substantial question of law arises where additions under Section 153A are deleted on the ground of absence of incriminating material, and such findings are concurrently upheld in identical factual circumstances.

HC’s Decision: The High Court dismissed the Revenue’s appeal, holding that no substantial question of law arises. It noted that the facts in the present case were identical to those in the case of the assessee’s brother, where the Court had already rejected the Revenue’s appeal.

The Court emphasised that both the CIT(A) and ITAT had concurrently examined the material on record and returned findings in favour of the assessee. Such concurrent findings of fact cannot be interfered with unless they are perverse or based on no evidence, which was not the case here.

Therefore, the Court held that the present appeal also does not warrant interference and dismissed the same.

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