2016 (9) TMI 602 - HC - Income Tax

Suppression of income/profit from C.T. Scan/USG films - Held that - The addition was on account of the fact that assessee claimed huge wastage of X-Ray films and CT Scan in respect whereof proper account showing extent of damage, claimed by assessee, was not substantiated and it is for this reason, entire damage claimed by assessee was not accepted. Though Assessing Officer made an addition of ₹ 3,40,000/- but substantial relief was given by CIT (A) by reducing it to ₹ 20,000/- which was enhanced to ₹ 50,000/- by Tribunal. It is a pure finding of fact and despite query, learned Counsel for appellant could not show that aforesaid finding is perverse. So far as question of remand is concerned, Tribunal has found that CIT (A) has not properly looked into the matter and is required deeper scrutiny. No perversity in the matter so as to justify an order of reversal in this appeal

Summary

Issues:
1. Appeal under Section 260-A of Income-tax Act, 1961 from judgment by Income-tax Appellate Tribunal for assessment year 1998-99.
2. Substantial questions of law regarding relief on account of income/profit suppression, wastage of films, estimation of income/profit, rejection of book result, and cancellation of relief on closing stock.
3. Tribunal's decision on grounds raised by Revenue, remand to Commissioner of Income Tax (Appeal) for deeper investigation, and partial allowance of appeal increasing the addition.

Analysis:
1. The appeal before the Allahabad High Court arose from a judgment by the Income-tax Appellate Tribunal concerning the assessment year 1998-99 under the Income-tax Act, 1961. The substantial questions of law raised included issues related to the relief on account of income/profit suppression and the estimation of income/profit from certain activities. The Tribunal's decision was challenged on various grounds, leading to a detailed examination by the High Court.

2. The Tribunal had rejected certain grounds raised by the Revenue in the appeal, while remanding specific issues to the Commissioner of Income Tax (Appeal) for further investigation. Notably, the Tribunal partially allowed the appeal by increasing the addition in one particular instance where the assessing officer's addition was reduced by the Commissioner of Income Tax (Appeal) but further enhanced by the Tribunal.

3. The High Court upheld the Tribunal's decision, finding no perversity in the matter that would warrant a reversal of the judgment. The Court ruled against the appellant and in favor of the Revenue on all the substantial questions of law raised in the appeal. Consequently, the appeal was dismissed, affirming the Tribunal's decision.

This detailed analysis highlights the key issues addressed in the judgment, the arguments presented by the parties, the Tribunal's findings, and the final decision rendered by the Allahabad High Court, providing a comprehensive overview of the legal proceedings and outcomes in this case.