Pr. Commissioner Of Income Tax-Ii vs Shri Braham Dev Gupta on 20 July, 2018

Sh. Salil Aggarwal with Sh. Madhur Aggarwal and Sh.
Uma Shankar, Advocates, for respondent.
CORAM:
HON’BLE MR. JUSTICE S. RAVINDRA BHAT
HON’BLE MR. JUSTICE A.K. CHAWLA

MR. JUSTICE S. RAVINDRA BHAT

%

1. The question of law in these two appeals is common:
“Did the Income Tax Appellate Tribunal (“ITAT”) erred in
holding that invocation of Section 263 of the Income Tax Act,
1961 in the assessee’s case, for two years (AY 2011-12 and
2012-13) was not warranted?”

2. On 02.09.2010, during the year under consideration, there was a
survey at the business premises of the assessee. It surrendered `18.25 odd
crores as additional income on account of excess stock found in his
premises. The assessee’s returns for AY 2011-12 declared income of `21,

ITA 907/2017 & ITA 1162/2017 Page 1 of 13
58,62,170/-, (inclusive of `18.25 crores surrendered during survey). For AY
2012-13, the return disclosed income of `25,36,38,801/-. The returns were
selected for scrutiny and notice issued to the assessee. The Assessing Officer
(AO) added some amounts to the declared income of the assessee on the
basis of disallowance of 10% non-business expenditure; likewise, 10% of the
amount claimed towards vehicle expenditure was disallowed. On
01.10.2015, the Commissioner (CIT) issued a Show Cause Notice under
Section 263 of the Income Tax Act, 1961 [hereafter “the Act”] to the
assessee observing that the AO failed to make any enquiry as regards, inter
alia, the, incurring of trading loss amounting to `38,62,38,61/- amongst
other issues.

Source: Indian Kanoon

Leave a Reply

*