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2021 (10) TMI 216 - AT - Income TaxBogus purchases - CIT(A) sustained the addition@5% of impugned purchases - In alternative conclusion No.2, the ld CIT(A) has worked out the addition to the tune of ₹ 14,99,663/- - why not the alternative addition worked out by ld CIT(A) should not be sustained, in the hands of the assessee? - HELD THAT:- It is settled legal position that where two views are available on an issue, the view favourable to the Assessee has to be followed. We note that Article 265 of the Constitution of India which says that "no tax shall be levied or collected except by authority of law". The Constitution has conferred upon the right to collect the due taxes from the assessee to the Revenue Department. As per the aforesaid Article, it is the duty of the assessee to pay the tax what is rightfully due to the Government and it is the responsibility of the tax officials to collect the revenue what is rightfully due to the Government by following the due process of law. Since, the ld CIT(A) (Department) has worked out the alternative addition on which the assessee supposed to pay the taxes. In the instant case, the Ld. CIT(A) has himself worked out the alternative addition, which can be sustained in the hands of the assessee, therefore, we are of the view that said alternative addition, (which is a lesser addition), should be sustained in the hands of the assessee. We note that Hon'ble Supreme Court in the case of Vegetable products Ltd. [1973 (1) TMI 1 - SUPREME COURT] held that if two reasonable constructions of a taxing provision are possible the construction which favours the assessee must be adopted. Therefore, we are of the view that Department may recover the taxes from the assessee on the addition which is less amount out of two alternatives, as worked out by ld CIT(A), by following the due process of law. In this scenario, we have no hesitation to prefer to follow the conclusion No. 2 reached by the ld CIT(A) and accordingly, we sustain the addition as made by CIT - Decided partly in favour of assessee.
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