ITAT Ranchi Judgments — January 2023

The Tribunal held that since the assessee was a government body mandated to charge only a 5% profit margin on wholesale liquor sales, the addition made by the AO and sustained partly by the CIT(A) was incorrect. The income declared by the assessee was accepted.

The Tribunal restored the appeal to the CIT-Dhanbad for fresh consideration. This was to allow the assessee to present an amended trust deed and other evidence.

The Tribunal noted that the CIT(A) made a finding on rectifiability without giving the assessee a fair opportunity. It also observed that another appeal by the assessee against the assessment order was pending.

The Tribunal allowed a 15% deduction for outdated, rejected, and defective goods, finding it reasonable and consistent with a co-ordinate bench's decision. The issue of interest calculation under Section 234B was restored to the AO for recalculation.

The Tribunal held that since the assessee was a government body mandated to charge only a 5% profit margin on wholesale liquor sales, the addition made by the AO and sustained partly by the CIT(A) was incorrect. The income declared by the assessee was accepted.

The Tribunal upheld the validity of the reassessment proceedings. It also confirmed the addition of Rs. 29,78,529/- as unexplained cash credit under Section 68, as the assessee failed to provide necessary details to explain the source of the funds.