Ita/1421/2009 Of The Commissioner Of Income Tax, Cochin v. M/S.enkays

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 9TH DECEMBER 2009 / 18TH AGRAHAYANA 1931 ITA.No. 1421 of 2009() ---------------------- ITA.1160/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S.ENKAYS, C/O. SHRI.N.K.SIVADASAN, PARTNER, CHEERIPARAMBIL, VATTUKUNNU, MULANTHURUTHY, COCHIN. ADV. M/S..T.M.SREEDHARAN V.P.NARAYANAN & C.K.SHERIN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 09/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N. RAMACHANDRAN NAIR &V.K.MOHANAN, JJ. ---------------------------------------- I.T.A. No.1421 OF 2009 ---------------------------------------- Dated, the 9[th] day of December, 2009 JUDGMENT Ramachandran Nair, J. The question raised in the Departmental appeal iswhether the Tribunal was justified in cancelling theaddition of Rs.12,91,840/- made in the assessment beingthe value of sales suppression detected by the sales taxauthorities. 2. We have heard the counsel appearing for bothsides. 3. On going through the orders, we find that theDepartment treated the estimated turnover assessed bysales Tax Authorities as undisclosed income of theassessee. It is the finding of the Tribunal that thisturnover cannot be treated as undisclosed income of theassessee. We are of the view that at the maximum netincome could be estimated from the turnover. Considering the total turnover income involved, that is,Rs.12 lakhs, the assessee may not have tax liability onthe net income. According to the assessee, the businessled to loss and the assessee has therefore abandoned thebusiness. We do not find anything to interfere with theorder of the Tribunal cancelling the addition.Consequently, the appeal is dismissed. C.N.RAMACHANDRAN NAIR JUDGE V.K.MOHANAN, JUDGE kvm/- -:3:- V.K.MOHANAN, J. O.P.No. JUDGMENT Dated:..