ARONUDOI APPERTMENT PRIVATE LIMITED,GUWAHATI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, GUWAHATI

ITA 36/GTY/2019Status: DisposedITAT Guwahati16 March 2021AY 2012-132 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO's addition was unsustainable as it was based on vague, absurd, and baseless assumptions without any evidence of error in the accounts. The CIT(A) also upheld the addition mechanically without proper application of mind.

What were the facts?

The assessee contested an addition of Rs. 1,64,911 made by the Assessing Officer (AO) for alleged undervaluation of work in progress. The AO made this addition based on an assumption that undervaluation was possible, without pointing out any specific defect in the assessee's accounts.

What were the issues?

Whether an addition for undervaluation of work in progress can be made solely on the basis of an assumption by the AO without any supporting evidence or defects found in the assessee's accounts.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” GAUHATI

Before: Shri SANJAY GARG

The present appeal has been preferred by the assessee against the order dated 29-11-2018 of the Commissioner of Income-tax (Appeals)-1, Guwahati [hereinafter referred to as ‘CIT(A)’].

2.

The assessee in this appeal has contested the validity of confirmation of addition of Rs. 1,64,911/-, which was made by the Learned Assessing Officer ( in short, the Ld. AO) on account of under valuation of work in progress.

3.

At the outset, Ld. counsel for the assessee has brought my attention to the impugned assessment order. A perusal of the relevant part of the assessment order shows that the only reason for making the impugned addition mad

The order continues below.

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