CIT vs. LAL SONS ENTERPRISES

IN THE HIGH COURT OF DELHI AT NEW DELHI 40 ITA 1060/2010 . CIT ..... Appellant Through Mr. Abhishek Maratha with Ms. Anshul Sharma, Advs. versus . LAL SONS ENTERPRISES ..... Respondent Through Mr. Somnath Shukla, Adv. CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN . O R D E R 02.08.2010 In this appeal preferred under Section 260A of the Income Tax Act, 1961, the revenue has called in question the legal propriety of the order dated 20th January, 2010 passed by the Income Tax Appellate Tribunal, Delhi Bench ?D? (for short ?the tribunal?) in ITA No. 3515/Del/2009 pertaining to the assessment year 2006-07 whereby the Tribunal has dislodged the order passed by the Commissioner of Income Tax (Appeals) passed on 8th June, 2009 under Section 263 of the Act and concurred with the view of the Assessing Officer on the foundation that on the date of survey, the physical stock was taken and the same was compared with the stock as per the books of account and further on such a thing being pointed out the Assessing Officer applied the GP rate as per the tax audit report and worked out profit which the assessee might have earned ITA No. 1060/2010 page 1 of 2 on such sale outside the books of account and added the same to the income of the assessee. . . Be it noted, the Tribunal has further observed that it is not the case of the revenue that the stock found in excess was not recorded in the books of account and, hence, there is no reason for making the addition on account of such purchase. The Tribunal has further opined that the entire purchase was already recorded in the books of account and no separate addition was warranted and what was required to be added was only the sale price of such stock which was not shown in the books of account and the same having been done adding GP rate of profit by the assessing officer, there was no error in the order. In view of the aforesaid, the concurrence of the tribunal with the order of the Assessing Officer and dislodging that of the order of the CIT(A) under Section 263 of the Act cannot be found fault with inasmuch the twin test in this case was not really satisfied. Thus, the appeal, being devoid of merit, stands dismissed in limine. . . CHIEF JUSTICE . . MANMOHAN, J AUGUST 02, 2010 vk . . ITA No. 1060/2010 page 2 of 2 . $ 46