Case Law Details
Samir Kishor Parekh Vs ACIT (ITAT Ahmedabad)
Held that addition made on estimated basis, without rejecting books of accounts of the assessee, is unsustainable in law
Facts-
Investigation team of the Excise Department revealed that tile manufacturers were declaring only 50% of the actual ex-factory prices and MRP for the purpose of payment of Excise duty. Consequently, the DGCEI carried out search at the business premises of the assessee on 21-08-2008 and it was alleged that the assessee had resorted to certain measures like removal of ceramic frit, undervaluing of finished goods and issuing parallel invoices etc. to evade excise duty. On the basis of the investigation carried by the Excise Department, the Income Tax Department initiated assessment proceedings and AO made certain additions to the returned income of the assessee, which were confirmed by the CIT(A) in appeal for the impugned year under consideration.
Conclusion-
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