2010 (2) TMI 1181 - AT - Income Tax

Summary

Issues involved: Validity of assessment made u/s 153A of the Income Tax Act for assessment years 2000-01 and 2004-05.

In the appeal for assessment year 2000-01, the only issue raised by the assessee was the validity of the assessment made u/s 153A of the Act. The assessee's argument was dismissed based on a previous decision against the assessee in a related case.

For the appeal of assessment year 2004-05, the assessee withdrew the issue related to an addition of &8377; 3,28,865. The assessment for this year was completed u/s 143(3) and not u/s 153A, making the validity of the assessment under section 153A irrelevant. The only issue remaining was the validity of the assessment made u/s 153A, which was decided against the assessee based on previous rulings.

In the appeal filed by the revenue for assessment year 2000-01, the main ground was the acceptance of the assessee's argument regarding confirmation of purchases by foreign supplier companies. The revenue contended that the suppliers had denied the purchases, but the confirmation letters obtained by the assessee were not disproved by the assessing officer.

For assessment year 2004-05, the revenue raised issues regarding purchases outside books, unaccounted foreign remittances, and false claims of purchases. The assessing officer relied on documents obtained from foreign tax authorities without providing copies to the assessee for rebuttal. The Tribunal affirmed the decision of the Ld CIT(A) based on previous rulings that revenue cannot rely on documents not shared with the assessee.

Regarding the false claim of purchases from M/s Wingro International, the Ld CIT(A) made an addition to the gross profit based on a difference in profit rates. The Tribunal reversed this decision, stating that the assessee had accounted for the purchases and sales in their books, and the provision made for purchases was in excess, leading to a direction for the AO to adjust the amount accordingly.

In conclusion, both the appeals of the assessee and the appeal of the Revenue for the assessment year 2000-01 were dismissed. The appeal of the Revenue for the assessment year 2004-05 was partly allowed.