Brugg Cables (India) P. Ltd. vs. ITO, Ward 1(3), Gurgaon

Parties Involved

Facts Summary

The assessee, Brugg Cables (India) P. Ltd., filed its return of income on 20.11.2017 and subsequently revised it on 05.06.2018 declaring a loss of Rs.72,09,630/- for the Assessment Year 2017-18. The case was selected for limited scrutiny through CASS for the reason 'Exports/Imports, claim of any other amount allowable as deduction in Schedule BP'. The Assessing Officer issued notices under section 143(2) & 142(1) of the Income-tax Act, 1961. The assessee submitted import-export data summary on 16.12.2019. The Assessing Officer observed that the assessee had shown the value of Rs.1,81,49,172/- of import-export data. The Assessing Officer issued a notice dated 23.12.2019 to the assessee to reconcile the data with its books of account. The assessee submitted that the difference in value was due to different bases taken by the report provided. The Assessing Officer added the difference in invoice value of input as per export-import data and purchases as reported in ITR to the tune of Rs.1,03,45,076/-. The assessee appealed against the order of the Commissioner of Income Tax (Appeals), Delhi dated 21.08.2023. The Commissioner of Income Tax (Appeals) dismissed the appeal. The assessee further appealed to the Income Tax Appellate Tribunal, Delhi Bench.…

Legal Issues

• 1. Whether the Assessing Officer was justified in adding the difference in invoice value of input as per export-import data and purchases as reported in ITR?
• 2. Whether the Assessing Officer's reliance on export-import summary data from CBEC was proper?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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