The Delhi High Court has dismissed the appeal against deletion of addition for share premium or bogus purchases or Cash deposits in bank as no challenge was made to evidence.
The assessee, Agson Global had filed its return of income qua AY 2012-2013 under Section 139 (1) of the Act. In this return, the assessee had declared its income. The Assessing Officer passed an assessment order under Section 143(3) of the Act. Via the said assessment order, the A.O. made an addition to the declared/returned income of the assessee on account of unexplained share capital and share premium‖. Resultantly, the assessed income shot up to Rs.24,52,85,750/-. Being aggrieved, the assessee preferred an appeal. The CIT(A), vide order dated 31.03.2016, deleted the aforesaid addition. Pertinently, the revenue did not carry the matter further. Consequently, the assessment proceedings vis-à-vis AY 2012-2013, stood concluded.
The division bench of Justice Rajiv Shakdher and Justice Talwant Singh while dismissing a bunch of appeals against deletion of addition u/s 68 towards Share capital/ share premium, bogus purchases and deposit in bank account, the Hon’ble Delhi High Court vide judgement delivered on 19.01.2022 (yesterday) has held that where the ITAT decided the matter based on appreciation of evidences placed on record and the order of ITAT not being challenged on ground of perversity, no substantial question of law arises.
It also held that the investigation wing directed the AO to frame the assessment in a manner that would protect the revenue’s interest.
“The AO performs a quasi judicial function while framing an assessment. The revenue can not dictate the manner in which the A O frames the assessment order,” the court said.
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