Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 498 - HC - Income TaxTrading addition - assessee failed to justify the adoption of sale price at less than opening stock price with documentary evidence - ITAT restricted the addition to ₹ 2,00,000/- as against ₹ 41,24,000/- made by AO - Held that:- The Assessing Officer made an addition of ₹ 41,24,000/- on the ground that the assessee failed to justify the adoption of sale price at less than opening stock price with documentary evidence. Further, the Assessing Officer held the said addition was the only income which the assessee got out of books of account and had not declared in his returned income. On appeal by the assessee, the CIT(A) upheld the order of the Assessing Officer and dismissed the appeal. On further appeal by the assessee, the Tribunal held that the Assessing Officer could not have estimated the sale price on the basis of rates of closing stock or some other notional basis without pointing out any defect in the sale price. The Tribunal while partly allowing the appeal of the assessee had sustained the addition of ₹ 2,00,000/- in the trading account. A perusal of para 8 of the order of the Tribunal shows that no legally justified reasons have been recorded for arriving at the said conclusion. In view of the above, the matter requires to be remanded. The matter is remitted to the Tribunal to decide the same afresh on merits in accordance with law. - Decided in favour of revenue for statistical purposes.
|