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Commissioner of Income Tax (Central) -1, Mumbai Versus M/s. Capetown Mercantile Co. Pvt. Ltd.

2015 (4) TMI 106 - BOMBAY HIGH COURT

Rejection of the books of account - addition to income - estimation to turnover - Held that:- The Tribunal has found that though the present assessee is a limited company, but it is associated with Pravin Kumar Jain group. Pravin Kumar Jain and his brother Pankaj Kumar Jain were Directors in the assessee company. However, the assessee was engaged in the business of trading of goods. The books of account of the assessee were audited. No defect or discrepancy was found. In these circumstances and .....

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of 2013 - Dated:- 17-3-2015 - S. C. Dharmadhikari And A. K. Menon,JJ. For the Appellant : Mr P C Chhotaray For the Respondents : Dr K Shivram, Sr. Adv. & Mr Rahul Hakani ORDER P. C. 1. This is an appeal by the revenue challenging the order passed by the Income Tax Appellate Tribunal, Mumbai in two appeals, one by the assesee-respondent and another by the revenue. 2. The assessment year is 2008-09. An order was passed by the Commissioner of Income Tax (Appeals) on 10th June, 2011. That was on .....

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gistered under the Indian Companies Act, 1956. A private limited company, the revenue itself states that it is in the business of trading of goods. A search / survey operation under section 132(1) and 133A of the Income Tax Act, 1961 was conducted in the cases of Pravin Kumar Jain group and persons / entities connected with him on 31st March, 2008. The assessee was an associate concern of Pravin Kumar Jain group. The Directors of this company are Pravin Kumar Jain and Pankaj Kumar Jain. E-return .....

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ble to demonstrate as to how the business expenditure at ₹ 40,42,634/- is allowable. Therefore, this additional ground raised by the assessee deserves to be rejected. 5. Thus, both the appeals were confined to the rejection of books' results under section 145(3) of the I.T. Act pertaining to the sustainence of addition. Thereafter, estimation done by the assessing officer was not sustained in its entirety by the Commissioner. 6. Mr.Chhotaray submits that the entire exercise undertaken .....

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engaged in the same activities. It is in these circumstances that the books of account were rejected and it was found that the estimation of income by the assessing officer needs to be done and that could not have been termed as arbitrary. Once the assessing officer has recorded his satisfaction in terms of sub-section (3) of section 145 of the I.T. Act, then, his order should have been upheld by the Commissioner. The revenue cannot be expected to bring anything more than what has been brought o .....

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lly. That is how the Tribunal interfered with the Commissioner's order and rightly. The appeal does not raise any substantial question of law as the matter is clearly factual. Therefore, this appeal should be dismissed. 8. We have with the assistance of both sides perused the order passed by the Commissioner as also the Tribunal. The Tribunal has found that though the present assessee is a limited company, but it is associated with Pravin Kumar Jain group. Pravin Kumar Jain and his brother P .....

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