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2019 (8) TMI 98 - ITAT PUNEReassessment proceedings u/s.147 - undisclosed sales - AO on information from the Joint Commissioner of Sales-tax, Economic Intelligence, Mumbai, alleged that assessee had collected sales tax @16% and showed only 4% to the Income-tax authorities, which lead to escapement of income - as per assessee no sales tax was collected - HELD THAT:- Here, we are confronted with a situation in which the assessee did not collect any Sales-tax at all and the entire exercise of showing inter-State sales instead of within State sales was aimed at increasing the balance of eligibility as per certificate which simply entitled it to make sales without charging any Sales-tax. Thus, it is established that the action of the assessee in resorting to such dubious means simply affected his liability under the Sales-tax Act without increasing the income chargeable to income-tax. Since no income escaped assessment by reason of the assessee showing sales made in Maharashtra as inter-State sales, we are satisfied that the ld. CIT(A) was justified in quashing initiation of reassessment proceedings. As the initiation of reassessment proceedings is held to be invalid, the sequitur is that the proceedings flowing there from should automatically stand cancelled including the additions so made by the AO. - Decided in favour of assessee.
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