Gurdip Cycle Industries v. DCIT

Auto Vogue Private Limited, Chandigarh vs. DCIT/ACIT(Cen)-1 Chd, Chandigarh

The appeal stand partly allowed

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं. / Ita No.405/Chandi/2025 (िनधा"रण वष" / Assessment Year: 2018-19) M/S Auto Vogue Private Limited Dcit/Acit(Central)-1 H.No.50 Sector-28 Sector 19 बनाम/ Vs. C.R. Building Sector – 17 Chandigarh - 160019 Chandigarh - 160017 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aanca-6705-A (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Sh. Nikhil Goyal (Advocate) & Sh. Ashok Goyal (Ca) – Ld. Ars ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) - Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 13-01-2026 घोषणाकीतारीख /Date Of Pronouncement : 15-01-2026 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2018- 19 Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals)-3, Gurgaon [Cit(A)] Dated 29-01-2025 In The Matter Of An Assessment Framed By Ld. Assessing Officer [Ao] U/S 143(3) Of The Act On 29-09-2021. 2. The Ld. Ar Advanced Arguments Assailing Extrapolation Of Figures As Found Recorded In Document Found During Survey Action.

…by Ld. AO to support the extrapolation, no presumption could be made that similar payment was made by the assessee during the rest of the months also. The extrapolation is in contradiction to the decision of this Tribunal in Gurdip Cycle Industries vs. DCIT (165 Taxmann.com 299) which has been rendered, inter-alia, after considering the decision of Hon’ble Punjab & Haryana High Court in the case of VM Spinning Mills vs. CIT (16 Taxmann.com 199) as well as various other decisions holding the field. In these decisions, addition on the basis of extrapolation has been held to be unsustainable. Respectfully following…