Factual Examination on ‘Addition’ of Unexplained Cash Credit under Income Tax Act Is Beyond Scope Of Appeal u/s 260A: Calcutta HC

The Calcutta High Court has ruled that factual examination of unexplained cash credit additions under the Income Tax Act is beyond the scope of appeals under Section 260A. The court emphasized that such examinations are primarily factual in nature and should be addressed at lower appellate levels. This decision clarifies the jurisdictional boundaries in tax appeals and streamlines the appeal process. The ruling helps distinguish between questions of law and factual determinations in tax proceedings. It provides guidance to taxpayers and tax authorities regarding the appropriate forum for different types of disputes.