PCIT (Central) Vs DSG Papers Pvt. Ltd. (Punjab and Haryana High Court)
The Punjab and Haryana High Court dismissed five appeals filed by the Revenue under Section 260A of the Income Tax Act, 1961, concerning Assessment Years 2013-14 to 2017-18 in the case of PCIT (Central) v. DSG Papers Pvt. Ltd.
The appeals challenged a common order of the ITAT, which had granted relief to DSG Papers principally on the ground that the Assessing Officer had not provided an opportunity to cross-examine persons whose statements were relied upon for making additions.
The Revenue contended that the ITAT erred in granting relief concerning additions based on allegedly suppressed sales and argued that the information had been received from the Directorate General of GST Intelligence (DGGI), a law enforcement agency. It also questioned the applicability of the Supreme Court’s decision in Andaman Timbers Industries.
The High Court noted that the DGGI had conducted a search on the assessee and related parties concerning alleged suppression and under-invoicing of sales. Statements of third parties and an ex-employee were relied upon in the assessment proceedings. The assessee had specifically requested cross-examination of four persons, namely Gulshan Gaba, Naveen Salley, Sudhir Sethi and Manish Jain, but no such opportunity was granted.
