ITAT held that assessee bound by its MD's affidavit, and shall not seek refund
ITAT held that assessee bound by its MD's affidavit, and shall not seek refund
A survey u/s 133A (of Income Tax Act, 1961) was carried out at the business premises of the assesse and after verification of stock, AO held that assessee had evaded the profit earned on sale, and applied the G.P. rate of 19.3%. CIT(A) deleted the entire addition. Dismissing Revenue’s appeal, the ITAT however held that assessee shall be bound by the affidavit filed by its Managing Director and shall not ask for refund of the taxes already paid on surrendered income.-500097
1. A survey u/s 133A (of Income Tax Act, 1961) was carried out at the business premises of the assessee on 30.07.2009. During the course of survey, physical verification of stock was done and stock of Rs. 47,19,230/- was found as against Rs. 3,01,78,000/- as per the tentative trading account prepared on the date of survey.
2. The Assessing Officer concluded that by reducing the prior period rejections written off from the opening stock and then by adding the same amount in the computation of income, the assessee had evaded the profit earned on sale of this stock and so she applied the G.P. rate of 19.3% (as declared in this assessment year) on sale of Rs. 3,00,90,0447- (Rs. 2,54,25,000/- + sales declared of Rs. 4,66,5044/-) and made addition of Rs. 58,0.7,378/-
3. The ld. CIT(Appeals) considering the facts and circumstances of the case, deleted the entire addition.
4. Considering the totality of the facts and circumstances of the case in the light of affidavit of assessee's Managing Director placed on record, we do not find any infirmity in the order of the ld. CI T(Appeals) in deleting the addition. The departmental appeal thus, has no merit. The same is liable to be dismissed. However, we direct that assessee shall be bound by the affidavit filed by the Managing Director Shri Dharamveer Khanna and shall not ask for the refund of the taxes already paid on the surrendered income. It would take care of the apprehension of the Department on the matter in issue. With these observations, we dismiss the departmental appeal.
Case Reference-The ACIT, Vs M/s Nova Industries (P)Ltd.,
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
AND Ms. ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER
ITA No. 970/CHD/2013
Assessment Year: 2010-11
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