2018 (6) TMI 1572 - HC - Income Tax

Additions made on the ground of undervaluation of the sales - estimated GP and on the ground of clandestine removal of goods - HELD THAT - Department preferred Tax Appeal and by the common judgment and order Division Bench of this Court having noted and considering the fact that the learned Tribunal ultimately deleted the additions primarily on the ground that by virtue of the judgment of the CESTAT the excise show-cause notice was adjudicated in favour of the assessee and the CESTAT deleted the additions on excise side and therefore the learned Tribunal was justified in deleting the additions made by the Assessing Officer Division Bench has confirmed the very common judgment and order but with respect to different Assessment years.

Summary

Issues:
Appeal against judgment and order of Income Tax Appellate Tribunal for different Assessment Years - Deletion of additions made by Assessing Officer on various grounds - Undervaluation of sales, estimated GP, clandestine removal of goods - Common question of law and facts - Dismissal of Appeals.

Analysis:
The High Court dealt with the appeals arising from a common judgment and order of the Income Tax Appellate Tribunal concerning different Assessment Years. The Tribunal had deleted additions made by the Assessing Officer based on undervaluation of sales, estimated GP, and clandestine removal of goods, leading to the Department filing the present Tax Appeals. The questions of law in each appeal pertained to the Tribunal's deletion of specific amounts on these grounds. The Court noted that similar additions were made for different Assessment Years but were all deleted by the Tribunal based on the judgment of the CESTAT in favor of the assessee regarding excise show-cause notice. The Division Bench upheld the Tribunal's decision, confirming that the additions were rightly deleted. Therefore, the Court found no question of law to be considered and dismissed the Appeals.

In summary, the High Court upheld the Tribunal's decision to delete the additions made by the Assessing Officer on grounds of undervaluation of sales, estimated GP, and clandestine removal of goods for different Assessment Years. The Court found that the Tribunal's actions were justified based on the CESTAT judgment in favor of the assessee regarding excise show-cause notice. As a result, the Appeals were dismissed as no question of law was found to arise.