Extrapolation cannot be done to assume income without any cogent material

Advertisement DCIT Vs Indo Count Industries Ltd. (ITAT Mumbai) ITAT Mumbai held that no extrapolation can be done on estimation basis in absence of any incriminating material. Accordingly, addition rightly deleted by CIT(A). Thus, order of CIT(A) upheld and appeal of revenue dismissed to that extent. Facts- The Assessee is a listed company engaged in the business of manufacturing and export of cotton yarn, knitted fabrics and home textiles; trading in cotton. A search action u/s. 132 of the Act was carried out in the case of the Assessee and its group concerns on 01/02/2018. Pursuant to th...