2011 (12) TMI 637 - HC - Income Tax

Summary

Issues involved: Challenge to order of Income Tax Appellate Tribunal reducing addition on account of unaccounted sales of man-made fabrics.

Summary:
The Tax Appeal was filed challenging the order of the Income Tax Appellate Tribunal reducing the addition made on account of unaccounted sales of man-made fabrics. The assessee had filed the return of income for the Assessment Year 2003-04, which was finalized at a higher amount by the Assessing Officer due to unaccounted sales. The CIT [A] reduced the additions, providing relief to the assessee. The Revenue challenged this before the Tribunal, which upheld the findings of the CIT [A] based on various factors. The Tribunal considered the gross profit ratio against the unaccounted sales and the deployment of minimum capital investment for making additions on account of undisclosed income. It concluded the issue in favor of the assessee and dismissed the Tax Appeal as it found no infirmity in the Tribunal's order.

In conclusion, the Tribunal's decision reducing the addition on unaccounted sales was upheld based on the facts and material on record, providing relief to the assessee against the Revenue's challenge.