Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 530 - HC - Income TaxAddition on account of suppressed sales - Addition on unexplained cash credit - ITAT allowed the claim - Held that:- As is apparent from the facts noted hereinabove, it is an admitted position that during the course of search no material had been found to show any undisclosed income of the assessee. No evidence had been found to indicate that assessee had realized sale consideration other than that recorded in its books of accounts. For the purpose of holding that the assessee had sold goods to fictitious parties at a price 25% higher than that shown in the bills, the Assessing Officer had mainly placed reliance upon the statement of Shri Mahendra H. Shah recorded under Section 132 (4) of the Act. However, as noted hereinabove, Shri Mahendra H. Shah had not specifically mentioned the name of assessee. Thus, no material had been found at the time of search to indicate that the assessee had sold goods at a price higher than that recorded in the books of accounts regularly maintained by it. In the circumstances, the Tribunal was justified in holding that in the facts and circumstances of the case the provisions of Chapter XIVB of the Act could not have been resorted to as block assessment cannot take place of regular assessment. See Sachdeva Steel Products case [2010 (9) TMI 1173 - GUJARAT HIGH COURT] In light of the above discussion, it is not possible to state that the Tribunal has committed any legal error so as to warrant interference - Decided in favour of assessee
|