In Income Tax Appeal No. 16 of 2023 -MP HC- Madhya Pradesh High Court rejects Income Tax appeal against Vaibhav Enterprises; No substantial question of law found
Justice Sheel Nagu & Justice Avanindra Kumar Singh [17-07-2023]

Read Order: Principal Commissioner of Income Tax V. M/s. Vaibhav Enterprises through concerned officer station road, Maihar, Satna (Madhya Pradesh)

Chahat Varma

New Delhi, August 2, 2023: The Madhya Pradesh High Court has refused to accept the appeal filed by the Principal Commissioner of Income Tax against M/s. Vaibhav Enterprises. The Court's decision was based on the finding that the order issued by the Income Tax Appellate Tribunal (ITAT) was rooted in factual disputes. As a result, the Court held that there were no substantial proposed questions of law raised by the Principal Commissioner of Income Tax.

In the present case, the Principal Commissioner of Income Tax had approached the Court by filing an appeal under Section 260A of the Income Tax Act. The main question was whether the ITAT had made an error in upholding the decision of the CIT (Appeal), which resulted in the deletion of an addition of Rs. 69,18,07,576 made by the Assessing Officer.

The two-judge bench of Justice Sheel Nagu and Justice Avanindra Kumar Singh noted that upon a bare perusal of the contents of the order, it was evident that the ITAT had found that in the absence of any charge of evasion of royalty/tax, there could be no presumption of suppression of quantity of production from the mine or purchases made by the appellant. The ITAT had also found that the Assessing Officer's findings leading to the addition were based on presumption rather than proof.

In light of the above, the bench ruled that there was no substantial question of law arising from the findings of the ITAT, as they were purely factual in nature. Consequently, the Court declined to admit the appeal, resulting in its dismissal.