Case Law Details
Agarwal Industrial Corporations Limited Vs Union of India (Bombay High Court)
Bombay High Court held that order of Tribunal directed the designated authority to calculate the tax amount applying the ratio of Mohommad Haji Adam & Co case. Designated authority had only to calculate the disputed tax by giving effect to the orders of the Tribunal. Order of Tribunal was not directing fresh examination on any issue.
Facts- The Reassessment proceedings were initiated against the petitioner and the income was reassessed after making an addition of 100% of alleged bogus purchases under section 68 of the Act.
An appeal came to be preferred before the Commissioner of Income Tax (Appeals) [‘CIT(A)], who restricted the addition to 25% of the amount of purchases made. This order, however, was challenged by both the petitioner as also the revenue before the Income Tax Appellate Tribunal, Pune.
The Tribunal partly allowed the appeal of the petitioner and remanded the matter to the to the file of the Assessing Officer. The Tribunal it set aside the impugned orders and remitted the matter to the file of Assessing Officers for applying the ratio laid down by this Court in the judgment of Mohommad Haji Adam & Co.
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