Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 1111 - ITAT AHMEDABADUndervaluation of finished goods - Addition on the basis of investigation additions made by the Central Excise Department - assessee has filed appeal before CESTAT against such investigation - HELD THAT:- As decided in assessee own case additions made by the assessing officer and confirmed by the Ld. CIT(Appeals) are based on the basis of additions made by the Central Excise Department, against which the assessee has filed appeal before CESTAT. Accordingly, the matter was restored to the file of Ld. CIT(Appeals) for fresh adjudication in light of the order passed by CESTAT. However, we note that in the set aside proceedings even Ld. CIT(Appeals) gave only part relief even though CESTAT had deleted the additions proposed by the Excise Department. In view of the above order of CESTAT giving complete relief to the assessee and directions of ITAT in assessee’s own appeal for assessment year 2008- 09, we are of the considered view that additions to the tune of ₹ 40 lakhs sustained by the Ld. CIT(Appeals) are liable to be set aside we also note that the additions have been sustained by Ld. CIT(Appeals) on purely estimate basis, as is evident from the observations made by Ld. CIT(Appeals) while passing the appeal order. It is well-settled law that no addition could be made on estimated basis without rejecting books of account of assessee as held by various Courts in the case of Asian Grantio India Ltd [2019 (10) TMI 1193 - ITAT AHMEDABAD], Royal Marwar Tobacco Product [2007 (12) TMI 321 - ITAT AHMEDABAD], Anil Kumar &Company [2016 (3) TMI 184 - KARNATAKA HIGH COURT] and Ercon Composites [2013 (12) TMI 902 - ITAT JODHPUR] Accordingly, we are of the considered view that Ld. CIT(Appeals) has erred in facts and in law in confirming the addition. - Decided in favour of assessee.
|