Case Law Details
Raj Auto Wheels (P) Ltd Vs JCIT (ITAT Jaipur)
Introduction: The recent case of Raj Auto Wheels (P) Ltd vs. ACIT before the Income Tax Appellate Tribunal (ITAT) in Jaipur brought to light three critical issues: Estimation of Sales, Deferred Sale, and Disallowance under Section 40(a)(ia) read with Section 194A. In a meticulous examination of these matters, the Tribunal provided nuanced rulings, shedding light on the complexities of income assessment.
1. Estimation of Sales and Deferred Sale:
The assessing officer, in line with the Commissioner of Income Tax (Appeals) [CIT(A)]’s directives, estimated sales at Rs. 18,57,60,104/-, constituting 60.97% of the sales against advances from customers during the year. However, an additional enhancement of 4.14% was introduced due to the alleged suppression of sales. The CIT(A) estimated the deferred sale for the year at Rs. 19,37,98,072/-. The assessing officer further estimated sales at Rs. 30 crore, a figure rejected by the CIT(A) as baseless.
Tribunal’s Decision:
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