Gujarat High Court
Pr.Commissioner Of Income-Tax-2 vs M/S Rameshwar Textile Mills ... on 29 August, 2016
Author: Akil Kureshi
Bench: Akil Kureshi, A.J. Shastri
O/TAXAP/629/2016 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL NO. 629 of 2016
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PR.COMMISSIONER OF INCOME-TAX-2....Appellant(s)
Versus
M/S RAMESHWAR TEXTILE MILLS LTD.....Opponent(s)
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Appearance:
MR SUDHIR M MEHTA, ADVOCATE for the Appellant(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MR.JUSTICE A.J. SHASTRI
Date : 29/08/2016
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Leave to amend.
2. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal dated 21.10.2015 raising following questions for our consideration:
"[A] Whether on the facts and circumstances of the case and in law, the order of the Hon'ble ITAT is perverse in restricting net profit on undisclosed turnover to 10% of turnover, despite the AO's finding that all expenses were already accounted for in the regular accounts and, therefore, the whole turnover should be treated as its income?
[B] Whether on the facts and circumstances of the case and in law, the order of the ITAT is perverse, in restricting the addition to 10% of undisclosed additional turnover, without considering Page 1 of 3 HC-NIC Page 1 of 3 Created On Tue Aug 30 07:30:16 IST 2016 O/TAXAP/629/2016 ORDER the unaccounted investment for making unaccounted sales as well as applicability of section 40A(3) of the I.T.Act on expenses for which even ledgers were available?"
3. Though two questions are framed, the issue is common viz. of restricting the additions of undisclosed turnover to 10% thereof by way of profit. Having heard learned counsel for the Revenue and having perused the documents on record, it emerges that the Assessing Officer had made additions of Rs. 6.35 crores to the income of the assessee which was the gross undisclosed turnover. In appeal, however, the Commissioner limited such additions to Rs. 63.51 lacs adopting the profit rate of 10% of the turnover. The Revenue was in appeal against the judgement which came to be dismissed by the Tribunal upon which, the present appeal is filed.
4. We further noticed that the Tribunal has relied on its decision in the earlier years on this very issue concerning the same assessee. Counsel for the Revenue would point out that against such judgement of the Tribunal, the Revenue's Tax Appeals No. 527/2015 and 528/2015 were dismissed by the Division Bench by an order dated 07.09.2015. In the result, this tax appeal is also dismissed.
(AKIL KURESHI, J.)
(A.J. SHASTRI, J.)
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O/TAXAP/629/2016 ORDER
Jyoti
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