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2017 (5) TMI 989 - HC - Income TaxUnaccounted investments - investment in the stock relating to undisclosed sales - Held that:- Yearly production reveals that on an average 68 MT of production is being made by the appellant daily. If we translate the quantity of undisclosed sales of 1570 tons, it gives an average of 23 days of production cycle/stock. The undisclosed sales of ₹ 6.11 crore is for a period of 91 days (January to March 2008). Accordingly, the investment in the stock relating to undisclosed sales comes to ₹ 1,54,51,743/(Rs.6.11 crore x 23 days/91 days). Therefore, the addition of ₹ 2 crore made by the AO is restricted to ₹ 1,54,51,743/-. Thus, the appellant gets a relief of ₹ 45,48,257/- by CIT-A When the matter travelled up to the ITAT it decided to give further relief to the Assessee beyond what was given by the CIT (A). The production cycle was reduced from 23 days to an average of 15 days resulting in more relief being granted to the Assessee. The Court is certainly not inclined to grant any further relief to the Assessee as the basis on which the CIT (A) proceeded to arrive at the conclusion, as extracted hereinbefore, was rational and could not be said to be based on surmises and conjectures. No substantial question of law arises from the impugned order of the ITAT.
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