Case Law Details
Sigma Castings Ltd. Vs DCIT (ITAT Lucknow)
The assessee has recorded the entries of sales and purchase in its books of account and has duly disclosed the items of sales and purchase in the profit & loss account and has duly disclosed the profit earned on the trading in the profit & loss account and has offered the same as business income. The assessee has furnished as much information as possible to justify its claim about the transactions of cloth being genuine. Under these circumstances, Hon’ble Supreme Court in the case of CIT vs. Odeon Builders Pvt. Ltd. [2019] 418 ITR 315 (SC) has decided the issue in favour of assessee by holding as under:
“1. Delay condoned.
2. We have perused the review petition and find that the tax effect in this case is above Rs.1 crore, that is, Rs.6,59,27,298/-. Ordinarily, therefore, we would have recalled our order dated 17th September, 2018, since the order was passed only on the basis that the tax effect in this case is less than Rs.1 crore.
3. However, on going through the judgments of the CIT, ITAT and the High Court, we find that on merits a disallowance o f Rs.19,39,60,866/- was based solely on third party information, which was not subjected to any further scrutiny. Thus, the CIT (Appeals) allowed the appeal of the assessee stating:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Your reporting is very helpful to all concerned as and when required and caters to the need of professionals.