Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (5) TMI 600 - DELHI HIGH COURTPenalty proceedings u/s 271AAC(1) - Unexplained expenditure u/s 69C - cumulative amounts as mentioned by CBIC relied upon - HELD THAT:- AO had relied solely on the assumption that the information provided by CBIC was correct notwithstanding that it had not disclosed the details of any import bills and that no reconciliation in this regard was carried out. AO had faulted the assessee for not reconciling the information regarding the quantum of purchases made as received from CBIC with that as disclosed by the assessee. AO also had no knowledge as to which import or purchase made by the assessee was not disclosed by the assessee as the AO also had no such information. We accept the contention that apart from stating that it had not imported goods of the value as disclosed, it was impossible for the assessee to dispute the alleged additional purchases. The assessee could not be faulted for not reconciling the data as the information available with the AO is wholly insufficient for carrying out any reconciliation exercise. If any addition was proposed to be made on the basis that the purchases as reflected in the assessee’s books is not correct and it has made certain imports that had not been recorded in the books of accounts, the least that the Assessing Officer was required to do was to identify the entries that ought to have been made in the Books of Accounts of the assessee and which it had failed to do. Merely proceeding on the basis that CBIC is an apex body and therefore, information provided by it cannot be doubted, without even identifying or meaningfully analysing such information, is wholly insufficient to proceed to make an addition. We find merit in the contention that the impugned order is unsustainable and has been passed in violations of principles of natural justice. It is obvious that the AO must have some material to indicate that an expenditure has been made to make such an addition. The only material in this case are the cumulative amounts as mentioned by CBIC without details of any such expenditure. Thus the impugned order is set aside. The matter is remanded to the Assessing Officer for decision afresh in accordance with law.
|