DCIT Vs Indo Count Industries Ltd. (ITAT Mumbai)
ITAT Mumbai held that no extrapolation can be done on estimation basis in absence of any incriminating material. Accordingly, addition rightly deleted by CIT(A). Thus, order of CIT(A) upheld and appeal of revenue dismissed to that extent.
Facts- The Assessee is a listed company engaged in the business of manufacturing and export of cotton yarn, knitted fabrics and home textiles; trading in cotton. A search action u/s. 132 of the Act was carried out in the case of the Assessee and its group concerns on 01/02/2018. Pursuant to the said search, notices u/s. 153A of the Act were issued to the Assessee by the AO for the A.Ys. 2012-13 to 2017-18 on 21/02/2019, and in response to the same, the Assessee filed its returns of income for all these years on 18/03/2019. Further, the case of the Assessee for A.Y. 2018-19, being the year of search and, hence, falling under the category of compulsory scrutiny, was selected for scrutiny and consequently a notice u/s. 143(2) of the Act was issued to the assessee by the AO on 09/08/2019. Subsequently, the AO completed the assessments for A.Ys. 2012-13 to 2015-16 & 2017-18 u/s. 143(3) r.w.s. 153A of the Act; for A.Y. 2016-17 u/s. 143(3) thereby making additions.
