ACIT, CIRCLE- 19(1), NEW DELHI vs. OJAS INDUSTRIES (P) LTD., NEW DELHI

ITA 4143/DEL/2017Status: DisposedITAT Delhi07 February 2024AY 2008-09Bench: Dr. B. R. R. Kumar, Accountant Member Shri Yogesh Kumar US (Judicial Member)39 pages
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What did the Tribunal hold?

The Tribunal concurred with the CIT(A) that the Assessing Officer's action in rejecting the book results and making an ad-hoc addition of Rs. 25 crores under Section 145(3) was not sustainable. The Tribunal found that the recovery ratio compared favorably and that the AO did not draw any adverse inference from the verified excise records.

What were the facts?

The assessee and Revenue filed appeals against the CIT(A)'s order concerning the assessment year 2008-09. The appeals involved various grounds, including disallowances on ad-hoc basis, expenses treated as capital in nature, and additions made by the Assessing Officer.

What were the issues?

Whether the Assessing Officer was justified in rejecting the assessee's book results and making an ad-hoc addition under Section 145(3) based on alleged lower yield from molasses and incomplete purchase details.

Which sections of the Income-tax Act were involved?

Section 37,Section 14A,Section 145(3),Section 36(1)(iii)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Dr. B. R. R. KumarShri Yogesh Kumar US

For Appellant: CA Sh. N.K. Garg, Adv
Hearing: 09.11.2023Pronounced: 07.02.2024

Heard together (2 matters)

ITA No. 3714/Del/2017
ITA No. 4413/Del/2017

Read from the judgment's own cause title. This page is filed under one of them.

Per Dr. B. R. R. Kumar:- The present appeals have been filed by the assessee and Revenue against the order of Ld. CIT-7, New Delhi dated 30.03.2017. 2. The assessee has raised the following grounds of appeal in ITA No. 3715/Del/2017:-

1.

The Ld. CIT(A) has erred in law and on the facts in restricting the disallowance on adhoc basis a sum of Rs. 12,53, 147/- to the extent of 10% of total expenses claimed u/s 37 of the Income Ta‹ Act, 1961. The disallowance s

The order continues below.

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