Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 434 - AT - Income TaxDeduction u/s 80HH and 80I denied - adoption of assessed income of ₹ 1,99,80,660/- by the Assessing Officer as per assessment order dated 30.3.94 - Held that:- Whatever addition have been made in the original assessment order would not survive as the original assessment order has become non-est after passing the Order under section 263 of the I.T. Act. The A.O. in pursuance to the Order under section 263 of the I.T. Act, passed the impugned order under section 143(3)/263 dated 31.03.1997. Therefore, whatever addition was made in the original assessment order cannot be repeated/adopted in the impugned order. Therefore, addition of ₹ 1,99,80,657/- as per original assessment order taken in computation of the impugned order is wholly unjustified and is liable to be deleted and set aside CIT(A) after elaborate discussion on the issue of deduction under section 80HH and 80I has allowed such claim of assessee-company. The assessee-company, therefore, rightly contended that it had commenced its business activities prior to 01.04.1990 and as such in assessment year under appeal on making above additions, assessee-company would be having positive income and as such assessee-company would be entitled for claiming deduction under section 80HH/80I on such addition even if it may be presumed that such addition could be made or adopted as per original assessment order in the present impugned order. Therefore, considering the totality of the facts and circumstances of the case and the reasons above, we are of the view that addition of ₹ 1,99,80,657/- is unjustified. - Decided in favour of assessee Addition on account of inflated purchases - no inquiry made from the concerned parties or on the documentary evidences filed by assessee-company - Held that:- A.O. merely made part addition of ₹ 42.83 lakhs for inflated purchases. Meaning thereby, A.O. accepted the existence of M/s. Trans-Asia Packaging Ltd., and substantial genuine purchases made by assessee-company from this party. The sole reason given by the A.O. was that purchases have been made through various parties originated from M/s. V.T.R. Container (P) Ltd., However, it appears that no inquiry have been made from any of the intermediary party for making the sales to the assessee-company. The A.O. forgot to note that when he taxed the income on sales, he should believe that sales could not be made without any purchases. Since the A.O. did not dispute the existence of M/s. Trans-Asia Packaging Ltd., and that substantial purchases have been made from this party have not been disputed by the A.O, therefore, on account of no inquiry made from the concerned parties or on the documentary evidences filed by assessee-company, no addition could be made against the assessee-company.- Decided in favour of assessee
|