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2020 (2) TMI 421 - AT - Income TaxAddition on sales to sister concerns on a selective picking of data and representing the difference between cost and selling price - HELD THAT:- Mere surmises and conjectures that the assessees had underpriced the sales value cannot be the basis for a pre-determined approach without bringing any third party transactions on record by the Assessing Officer. The available documentary evidences in the form of purchase invoice, sales invoice, various bills and vouchers have not been found defective by the Assessing Officer at any point of time. When the quantitative details certified by the statutory authorities which are also part of the record subject to scrutiny by the Assessing Officer have not been rejected by him, then the Assessing Officer cannot presume that the assesses had suppressed the profits. It is not the case of the Assessing Officer that there were any material defects noticed at the time of examination of the books of account and also that there was no change in the method of accounting adopted by the assessees from what was regularly adopted. Accordingly, we are of the opinion that the Assessing Officer cannot blow hot and cold at the same time and onus clearly lies on the Assessing Officer to prove that the books of account maintained by the assessees suffers any defects. In the absence of any documentary evidence indicating any lapse on the part of the assessees in maintenance of books of account which were subjected to audit by the statutory authorities, we are of the opinion that the additions made by the Assessing Officer to the profits of the assessees only on the basis of surmises and conjectures of low profits on account of higher cost of production and sales price charged by the assessees’ sister concerns cannot stand the test of law leave alone the Assessing Officer’s own logic - basis adopted by the Assessing Officer for making additions towards lower profits cannot be sustained. Addition under ‘business head ' on the pretext that there was an 'apparent loss' on alleged policy of underselling in which event there was an apparent gain in the books of sister concern(s) - Any addition under the head "income from business" becomes revenue neutral in nature since any addition towards underselling in the hands of the assessee becomes a corresponding deduction for purchase in the hands of sister concern(s), as held by the Supreme Court in the case of CIT vs. Glaxo Smithkline Asia (P) Ltd. 2010 (10) TMI 21 - SUPREME COURT] . When this judgment was brought to his notice by filing a copy, the Assessing Officer took a dramatic U turn to hold that units were independent. This action of the A.O. is unjustified. Hence, the addition on account of underpricing was not warranted. The assessing officer missed the vital point that income was below taxable limit after b/f losses were set off during the current year. Moreover, there was no finding by the lower authorities that sister concerns benefited in any manner. Being so, in our opinion, these cannot be any additions towards low selling price charged to sister concerns. Interest u/s. 244A - HELD THAT:- We do not find any infirmity in the finding of the CIT(A) that the interest on Income tax refund assessable under the head other sources is to be taxed in the year in which the right to such refund had been recognized by an order or the date on which it is actually received by placing reliance on the decision of the Tribunal in the case of DCIT vs. Seshasayee Papers and Bonds Ltd. [2009 (3) TMI 901 - ITAT CHENNAI] wherein it was decided that it has to be taxed in the year of actual receipt. Being so, we dismiss this ground of appeal of the assessee
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