ITA No.364/RJT/2015 Akta Textile Printery

Parties Involved

Facts Summary

A search and seizure action under section 132 of the Income-tax Act, 1961, was carried out at the premises of the assessee, M/s. Akta Textile Printery, on 25.02.2011. The assessee is engaged in the business of printing and dyeing job work. The search led to the discovery of incriminating documents and diaries that revealed substantial investments in properties and unaccounted income. The assessing officer issued a notice under section 142(1) of the Act and a detailed questionnaire on 08.08.2012. The assessee submitted a cash flow statement, but it did not explain the seized materials. The assessing officer prepared a cash flow statement based on the seized materials and issued a show cause notice to the assessee. The assessee argued that certain investments were made by third parties, but the assessing officer rejected this contention. The assessing officer made additions in the hands of the assessee for unexplained investments and expenditures. The assessee appealed to the Commissioner of Income Tax (Appeals), who deleted the additions made by the assessing officer. The Revenue appealed to the Income Tax Appellate Tribunal, which set aside the order of the Commissioner of Income Tax (Appeals) and remitted the matter back to the Commissioner of Income Tax (Appeals) for fresh adjudication.…

Legal Issues

• 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and /or on facts in deleting the addition of Rs.1,99,39,000/- made on account of unexplained expenditure.
• 2. On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the AO.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

Similar Judgements

• Dimple Manoj Sanghvi vs Deputy Commissioner of Income Tax

  Ahmedabad bench

• ACIT, Central Circle -2, Trichy vs. Maragathamani Shanmugam, Ramasamy Moolimangalam Vaishnava Priya, Karuppanna Gounder Palaniappa Gounder Mariappan

• Shri S. Elambharathi vs. The Deputy Commissioner of Income Tax

  Chennai bench

• ITA Nos.4138 & 4139/DEL/2025

  Delhi bench

• M/s. Adam Smith Consultancy Pvt. Ltd. vs. ACIT, Central Circle 05

  Delhi Bench 'E', New Delhi benchAY 2016-17Allowed

• ITA No.7750/Del/2018 (ASSESSMENT YEAR 2007-08)

  Delhi Bench ‘G’ benchAY 2007-08Dismissed