Case Law Details
ACIT Vs Asahi Infrastructure & Project Ltd (ITAT Mumbai)
The main point of contention in the case is the inappropriate application of sections 44AD and 44AF to Asahi Infrastructure & Project Ltd by the AO (Assessing Officer). This miscalculation resulted in an inflated assessment of the company’s income at Rs.40,81,308. The company’s total turnover stands at Rs.20,40,65,412, audited under the provisions of the Companies Act, 1956, and section 44AB of the Income Tax Act. Notably, sections 44AD and 44AF pertain only to businesses with a turnover of Rs.40.00 lacs or less, which does not apply to Asahi Infrastructure. Consequently, the CIT(A) correctly removed this undue addition.
Additionally, the CIT(A) deletion of the addition of Rs.1,56,67,294 based on fresh evidence was challenged by the Revenue, arguing that the AO was not provided with adequate opportunities to present their case, a contravention of Rule 46A of the Income Tax Rules, 1962. Despite several reminders, the AO did not respond, leading to the confirmation of CIT(A)’s action based on the ample evidential support presented by the assessee.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by Revenue is arising out of order of CIT(A) – Mumbai in Appeal No.CIT(A)-14/IT.402/Rg.6(1)/09-10 dated 29/06/2012. Assessment was framed by ITO, Ward 6(1)(2) for the assessment year 2007-08 vide his order dated 31/12/2009 under section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘ the Act’).
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