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2011 (1) TMI 663 - PUNJAB AND HARYANA HIGH COURTAddition - During the assessment, the Assessing Officer made additions, inter-alia, on account of low yield, difference in rates of sale of sugar, claim of excessive expenses, difference in sale of molasses, absence of details of parties to whom amounts were entered as payable, disallowance of expenses towards subscription and contribution, non-charging of interest on the advances made, disallowance of development expenses, disallowance of penalty payable to growers and disallowance of staff welfare expenses - Except that the other concern is also a sugar mill there is no material referred to by the Assessing Officer to justify the comparison - In any case, the low yield ratio could, at best, be the reason for the Assessing Officer to carry out a verification exercise of the results declared by the assessee - Held that: there is no adverse inference by the Assessing Officer with regard to the account books and other records examined by him - Decided n favour of the assessee Regarding sale rate - There is no whisper much less a finding by the Assessing Officer that the assessee had made any sales outside the books of account or that the assessee has realised any sale proceeds of sugar outside the books of account Regarding subscription and contribution - The spirit of Rule 46A is founded on the principles of natural justice which in the present case, in our view, stand fulfilled by the fact that the CIT(A) obtained and considered the remand report of the Assessing Officer with respect to the submissions and material led by the assessee before adjudicating the issue before him It is not necessary that when additional evidence is furnished, the matter must be remanded to the Assessing Officer. It depends on nature of issue and nature of evidence - Mere fact that the yield of the assessee was not comparable to other yields, could not be a ground to doubt the results declared by the assessee - Same is the position on the issue of genuineness of sale rate, evidence regarding subscription, contribution and treatment of penalty amount - rates of molasses non-recovery of the shortage amounts, the use of subsidy and expenditure by way of interest on loans raised from the banks, the matter has merely been remanded to the Assessing Officer to ascertain the true facts - Decided in favour of the assessee
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