Notional Addition on Alleged Understatement of Sales — Held Without Authority of Law

Vestas Wind Technology India Private Limited Vs JCIT (ITAT Chennai)

Notional Addition on Alleged Understatement of Sales — Held Without Authority of Law

The assessee sold 15 WTGs to its subsidiary companies for ₹134.72 crores, whereas the AO compared third-party prices (average about ₹10.68 crores per WTG) and adopted a notional sales value of ₹160.34 crores, treating the difference of ₹25.60 crores as understatement of sales and adding it to income. The Tribunal held that the AO did not cite any provision of the Act empowering him to disregard act

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