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2021 (11) TMI 322 - AT - Income TaxAssessment u/s 153A - Addition on account of alleged suppressed profit at Unit-1, Vapi and alleged exaggerated profits at Unit-11, Baddi - HELD THAT:- The figures for the three years as submitted by the production manager match with the figures submitted by the assessee independently. The department has curiously alleged suppression of sales, just on the basis of change of Units (without assigning any basis) of the figures supplied by the assessee. CIT(A) observed that all these data has been submitted to AO during assessment proceedings. These have been reproduced in the assessment order. The same difference in Units (strips vs. numbers of capsules/tablets) exists for the other four years also vis-a-vis the sale record. If the numbers of capsules/tablets in lakhs as given by the assessee are compared with strips in the sale data for other years also; same absurd and erroneous additions could have been made for these years too. Therefore, ld CIT(A) held that this demonstrates the arbitrariness and travesty of the approach of the AO. Not an iota of evidence of any excess raw material purchase, out of books expenses, labour and other manufacturing expenses or receipt of unaccounted sales proceeds, has been found or brought on record even after a detailed search. The additions for alleged suppression have been made purely on selective misinterpretation, without dealing with the explanations/clarification of the production manager and the assessee, completely ignoring the record including audits/inspection by third party and in absence of any incriminating evidence.That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed.
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