COMMISSIONER OF INCOME TAX Vs. PADMINI TECHNOLOGIES LTD

JUDGEMENT

(1.) The present appeal is filed by the Revenue against the order of the RAT dated 4.9.2009 thereby confirming the order of the CIT(A) to the effect of deleting additions to the tune of '38,12,25,856/- made by the AO under Section 68 of the Income Tax Act (hereinafter referred to as the Act).

(2.) To narrate the genesis of instant dispute, the facts are succinctly produced as under:

(3.) The Assessee, having received the notice dated 28.03.2002, issued by the department under Section 148 of the Act filed its return dated 26.04.2002 thereby declaring its income as 'NIL'. Notices under Section 143(2) and Section 142(1) along with a questionnaire were also issued, in response to which detailed submissions were filed by the Assessee. Meanwhile, the Assessee, feeling aggrieved with the findings of the Revenue Intelligence, filed a petition before the Custom and Central Excise Settlement Commission (C and CESC) (hereinafter referred to as the Settlement Commission) which was admitted vide its order dated 5.8.2002. Admission of this petition was taken as a defense by the Assessee before the AO but this submission could not produce the desired effect as the AO was of the opinion that the order to admit the matter was not the final order. The AO calculated the unexplained amount at ' 38,12,25,856/- and treated it as income of the Assessee under Section 68 of the Act.