The High Court dismissed the Revenue's appeal against the ITAT's order. The Tribunal correctly held that adopting a single unrealistic net profit figure from a hard disk printout, ignoring audited books due to lack of evidence for parallel accounts, was not perversive.
The appeal is dismissed; the ITAT order is upheld.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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PRINCIPAL COMMISSIONER OF INCOME-TAX-08, ..... Appellant Through: Mr Dileep Shivpuri, Senior Standing Counsel with Mr Zoheb Hossain, Junior Standing Counsel.
versus
M/S SHRUTI FASTNERS LTD.
..... Respondent
CORAM: JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU
CM No.6934/2016
ITA 162/2016
ITA 162/2016 Page 1 of 3
matter to the Assessing Officer („AO‟) for a fresh decision after providing an adequate opportunity to the Assessee.
ITA 162/2016 Page 2 of 3
there were either purchases or sales outside the books of accounts. There was no evidence that the Assessee maintained parallel books of accounts. The contention of the Revenue that the difference in the figures of closing stock as on 31st March 2011 and the opening stock as on 1st April 2011 were due to unaccounted sales was rejected as being absurd. The ITAT observed that “just one unrealistic and absurd figure of net profit is taken out from the print out of the rough document from the CPU/hard disk and adopted for assessment of total income. Such an approach cannot be approved”.
S.MURALIDHAR, J
VIBHU BAKHRU, J
MARCH 01, 2016 MK
ITA 162/2016 Page 3 of 3
2 issues framed by the court
Whether the High Court should interfere with the ITAT's deletion of addition on net profit.
Whether relying solely on a hard disk printout for assessment amounts to perversity.
2 provisions across 1 enactments
PRINCIPAL COMMISSIONER OF INCOME-TAX-08
M/S SHRUTI FASTNERS LTD.
S. MURALIDHAR
VIBHU BAKHRU
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
