ITA 2341/BANG/2025

Parties Involved

Facts Summary

The assessee, SILKTEX LIMITED, a private limited company and a 100% Export Oriented Unit dealing in Export of Silk Fabrics, did not file its original return of income for the assessment year 2016-17. A show cause notice under section 148A(b) of the Income Tax Act, 1961 was issued, but the assessee did not respond. Consequently, a notice under section 148 of the Act was issued on 16.03.2023, to which the assessee did not respond. The assessee submitted that it was under recovery measures by the State Bank of India under the SARFAESI Act, 2002, and its factory premises were taken possession of by the SBI. The Assessing Officer, considering the export transactions flagged on the RMS Module in the Insight Portal, held that the entire income from exports was undisclosed and added 10% of the export sales as undisclosed export business income. The Assessing Officer also added 10% of the contract receipts as income of the assessee. The assessee did not provide any documentary evidence during the assessment or the appellate proceedings.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeals) erred in confirming the impugned order?
• 2. Whether the notice issued under section 148 of the Act was barred by limitation?
• 3. Whether the addition of 10% of the export turnover and contract receipts as income is justified?

Judgment Outcome

Decided in favour of Assessee.

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