ACIT Vs Shivprakash S Chandak (ITAT Mumbai)
ITAT Remands Addition on Alleged Unrecorded Imports Because Customs Assessable Value Was Not Properly Examined; Addition Under Section 69C Sent Back After ITAT Finds Incomplete Verification of Import Transactions; Gross Profit Addition on Unrecorded Imports Requires Verification of Stock and Corresponding Sales; ITAT Questions Basis of Peak Addition in Case Involving Alleged Out-of-Book Imports; Section 69C Addition Reopened After ITAT Finds Customs and Purchase Data Not Properly Reconciled; ITAT Remands Case Because Customs Assessable Value and Invoice Value Were Incorrectly Treated as Same.
The Mumbai ITAT dealt with appeals filed by the Revenue and cross-objections filed by the assessee against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2015-16. The dispute related to additions made on account of alleged unrecorded imports, unexplained expenditure under Section 69C, and estimation of gross profit.
The assessee, an individual engaged in the business of trading in yarn and fabrics through his proprietary concern, filed a return declaring income of Rs. 25.74 lakh. During scrutiny assessment, the Assessing Officer examined customs duty payments and compared the figures disclosed in the books with information available from customs authorities. It was found that the assessee had recorded customs duty payments of Rs. 2.11 crore in the books, whereas customs data reflected customs duty payments of Rs. 2.50 crore, resulting in a discrepancy of Rs. 39.74 lakh.
