DCIT Vs Asian Consolidated Industries Ltd. (ITAT Delhi)
ITAT Delhi Dismisses Revenue’s Appeals- Wrong Rejection of Books, 44AD Inapplicable & 80HH/80I Deductions Allowed
Delhi ITAT delivered a consolidated order dismissing Revenue’s appeals for AYs 1993-94, 1994-95 & 1995-96 in the case of M/s Asian Consolidated Industries Ltd.
Asian Consolidated Industries Ltd. (originally Asian Can Ltd.) was engaged in manufacturing of flexible packaging, laminates, open top sanitary cans & general line metal cans. Pursuant to orders of Punjab & Haryana High Court, Asian Closures Ltd. & Trans Asia Packaging Ltd. were amalgamated with the Assessee. Subsequently, the company went into liquidation in 1999 & appeals were dismissed by CIT(A) for want of representation. On revival in 2013, the High Court permitted the ex-management to contest earlier orders. Tribunal in 2015 remanded the assessments to AO. AO passed fresh consolidated orders in 2016 reiterating the earlier additions & disallowances, which were mostly deleted by CIT(A). Revenue carried the matter to Tribunal.
Revenue challenged deletion of additions relating to bogus sales/purchases, unexplained investments, disallowances of manufacturing & administrative expenses, allowance of deductions u/s 80HH & 80I, 100% depreciation on kegs, preliminary expenses, interest disallowance & acceptance of books rejected by AO. Revenue argued that CIT(A) wrongly ignored AO’s findings & ought to have applied presumptive taxation u/s 44AD.
