Gujarat Trading Co. Vs ITO, Ward-34(1), Kolkata
Parties Involved
Facts Summary
The assessee, Gujarat Trading Co., filed its return of income for the assessment year 2018–19 declaring a total income of ₹6,50,120. The case was reopened under section 147 r.w.s. 144B based on information received from the ADIT (Investigation), Bharuch, stating that Gujarat Trading Company was a principal buyer of products manufactured by Pragati Glass Pvt. Ltd. The Assessing Officer treated an amount of ₹1,63,43,983 as unexplained investment under section 69 of the Act, adding the same to the income of the assessee and determining total income at ₹1,69,94,103. The assessee appealed to the CIT(A), which allowed the appeal on the ground that no addition had been made by the Department on similar transactions for A.Ys. 2015–16, 2016–17 and 2017–18, and the AO could not make additions merely on the basis of third-party information without rejecting the books of account.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the addition of ₹1,63,43,983 as unexplained investment under section 69 of the Act was justified.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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