2023 (2) TMI 1359 - HC - Income Tax

Reopening of assessment - Estimation of income - bogus purchases - addition made towards working capital @ 10% on the purchase mode for making the under disclosed sale - HELD THAT -Admittedly, the appellant did not seek for reasons for re-opening nor filed any objection to the re-opening but submitted that the original return of income filed on 30th October, 2001 may be treated as return of income pursuant to the notice issued u/s 148. AO proceeded with the assessment by resorting to the scrutiny procedure. From the order passed by the AO, we find that detailed factual aspects have been dealt with and the assessment is completed. CIT (A) tested the correctness of the order and granted partial relief to the assessee by reducing the percentage of undisclosed purchases/sales. Assessee carried the matter on appeal to the Tribunal which further reduced the addition to 10% towards purchase on the undisclosed sales. The entire matter is factual and there is no error in the decision making process adopted by the Tribunal or for that matter by the CIT(A).

Summary

The High Court of Calcutta dismissed the appeal filed by the assessee under Section 260A of the Income Tax Act, 1961. The appeal was against the order passed by the Income Tax Appellate Tribunal for the assessment year 2001-02. The Court rejected the substantial questions of law raised by the appellant and upheld the Tribunal's decision regarding the addition made towards working capital and the correctness of the assessment reopening. The Court found no error in the decision-making process and dismissed the appeal.