9911796707
|
Home
Issues involved: Appeal by Revenue against CIT (A) orders for Assessment Years 2003-04, 2004-05, and 2005-06.
Issue 1: Estimation of unaccounted turnover and income The appeal questioned the direction to delete the addition made on account of estimated unaccounted turnover and income without appreciating the case facts. The assessee argued that the Assessing Officer made estimations based on loose papers found during a search operation, citing relevant legal precedents. The CIT (A) relied on various decisions before allowing the appeals. The Revenue did not present new arguments. The Tribunal found that extrapolation beyond the assessment year for which seized papers are found is not legally permissible. It was noted that no incriminating material supported the Revenue's allegations of sales suppression for the years in question. The Tribunal confirmed the CIT (A)'s decision, dismissing the Revenue's grounds. In conclusion, the Tribunal held that estimations cannot be made without incriminating material or based on extrapolation. As there was no evidence of ongoing unaccounted transactions, the CIT (A)'s decision was upheld, and the Revenue's appeals were dismissed. *Judgment delivered on 8th March, 2013.*
|
