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Gujarat High Court

N.K. Industries Ltd vs Dy.C.I.T. - Opponent(S) on 18 October, 2005

TAXAP/241/2003                     1/3                       ORDER



       IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                   TAX APPEAL No. 241 of 2003


=================================================
       N.K. INDUSTRIES LTD. - Appellant(s)
                      Versus
             DY.C.I.T. - Opponent(s)
=================================================
Appearance :
MR JP SHAH for Appellant(s) : 1,
MR TANVISH U BHATT for Opponent(s) : 1,
=================================================

         CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA
                 and
                 HONOURABLE MS.JUSTICE H.N.DEVANI


                       Date : 18/10/2005

                             ORAL ORDER

(Per : HONOURABLE MR.JUSTICE D.A.MEHTA) 1 The appellant has proposed as many as eight questions, however, only two issues arise from the Tribunal's order in I.T.(SS)A No.38/Ahd/2002. 2 Heard Mr.J.P.Shah and Mr.T.U.Bhatt, learned Counsel appearing for the appellant and the respondent respectively.

 TAXAP/241/2003                             2/3                                   ORDER



3      ADMIT.

4      The       following          substantial              questions      of   law

arise for determination.

        "(1) Whether           on    the         facts       and    in   the

circumstances of the case the Income Tax Appellate Tribunal was justified in confirming the addition of Rs.3,70,78,125/- as gross profit on sales of Rs.37.08 crores made by the Assessing Officer despite the fact that the said sales had admittedly been recorded in the regular books during Financial Year 1997-98 ?

(2) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the Assessing Officer had rightly made additions in respect of purchases worth Rs.1,14,78,000/- from M/s. Somnath Industries and Rs.51,67,228/- from M/s.Krishna Marketing TAXAP/241/2003 3/3 ORDER in assessment which has been framed u/s.158BC of the Act, despite the fact that in proceedings under Section 132 of the Act no material was found in relation to said two parties to warrant such additions ?"

                                 Sd/-                    Sd/-
                              (D.A.Mehta,J)      (H.N.Devani,J)

m.m.bhatt