Starline Organics Pvt. Ltd. Vs PCIT (ITAT Ahmedabad)
On perusal of the details filed by the assessee, we note that the assessee has incurred VAT expenses on the deemed import which are eligible to be set off against the VAT output. Thus the finding of the learned principal CIT that there was no VAT input available to the assessee on the deemed import appears to be incorrect.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Principal Commissioner of Income Tax-4, Ahmedabad, dated 22/02/2019 arising in the matter of assessment order passed under s. 263 of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2014-15.
2. The only issue raised by the assessee is that the learned PCIT erred in holding that the assessment order passed under section 143(3) of the Act is erroneous insofar prejudicial to the interest of revenue.
3. The facts in brief are that the assessee in the present case is a private limited company and engaged in the business of trading of Unrefined Sulphur. The case of the assessee was selected under scrutiny and therefore the assessment was made under section 143(3) of the Act dated 7th September 2016 at Rs. 28,64,460/- under normal computation of income and at Rs. 28,27,027/- under MAT provisions.
3.1 Subsequently, the learned PCIT on the verification of assessment records found that the assessee has shown purchases from the following parties:
