What did the Tribunal hold?

The Tribunal found no merit in the Revenue's appeal on merits. The assessment order was not sustainable as additions were made on presumption without any discrepancy in sales, purchases, or incriminating documents.

The Revenue filed an appeal against the assessee's assessment order. The tax effect was below the monetary limit prescribed by CBDT circulars. No seized documents were used against the assessee, and additions were made on a presumption basis regarding GP rates.

What were the issues?

Whether additions made on presumption basis regarding GP rates, without supporting evidence, are sustainable. Whether the appeal is maintainable given the tax effect below the prescribed monetary limit.

ACIT vs Sanskar Jeweles Ltd | ITAT Mumbai 2016

Income Tax Appellate Tribunal, “E”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH, JM

For Appellant: Shri S.L. Poddar (AR)

For Respondent: Shri Pradeep Kumar Singh (DR), Shri S.L. Poddar (AR)

Hearing: 21/10/2016

Revenue by : Shri Pradeep Kumar Singh (DR) Assessee by : Shri S.L. Poddar (AR) Date of Hearing : 21/10/2016 Date of Pronouncement: 21 /10/2016 O R D E R

PER PAWAN SINGH, JM:

The above appeal is filed by the Assessing Officer (AO) raising various grounds of appeal

for the assessment years mentioned above. The tax effect involved in the above referred case is below the monetary limit (Rs. 10,00,000/-) prescribed by the Central Board of Director Taxes(CBDT), vide its Circular No.21/2015(F.No.142/2007-ITJ (Pt.) dated 10th December, 2015.

2. Even on merit the perusal of assessment order, it is revealed that no seized documents were utilized against the assessee in the assessment order. The additions were made on GP rates. No discrepancy was pointed out in the sales and neither purchase nor any incriminating document was found and seized and as such the additions were made on presumption basis. Thus, the order was not sustainable as held by ld. CIT(A). Thus, on merit in the appeal, we do not find any merit in the appeal of the Revenue.

3. In the result, appeal of the Revenue is dismissed.

ACIT CEN CIR 32, MUMBAI vs. SANSKAR JEWELES LTD, MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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