AO cannot ignore sale price declared by assessee without any basis

Advertisement Flipkart India (P) Ltd. Vs ACIT (ITAT Bangalore) Where the assessee sold goods at loss in order to create market for itself, AO disregarded the loss without any basis and converted the same into income then action of AO was not justified. What can be taxed is only income that accrues or arises as laid down in section 5 of the Act. Nothing beyond section 5 of the Act can be brought to tax. There was nothing to show accrual of income so as to disregard the loss declared by the assessee in the return of income filed. There is no provision in the Act by which the AO can ignore the...