Itxa/681/2016 Of Commissioner F Income Tax - 27 v. Gem Corporation

Priya Soparkar IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.681 OF 2016WITHINCOME TAX APPEAL NO.1048 OF 2016 Pr.Commissioner of Income Tax-27… Appellant V/s. M/s Gem Corporation … Respondent --- Mr.Ashok Kotangle with Ms.Padma Divakar for the Appellant.Mr.Ashish Gabhale for the Respondent. --- CORAM : AKIL KURESHI AND M.S.SANKLECHA, JJ. DATE : DECEMBER 04, 2018. P.C.:- 1. Since issues are similar, we may record the facts from TaxAppeal No.681 of 2016. 2.The Revenue has challenged the judgment of Income Tax Appellate Tribunal ("the Tribunal" for short) dated 13[th] March, 2015. Following questions are presented for our consideration: “(i) Whether on the facts and circumstances of the Priya Soparkar case and in Law, the Hon'ble ITAT was justified inaccepting assessee's Books of Accounts only on thebasis of acceptance of sales by Commercial TaxAuthorities even when substantial amount of saleswere made in the name of non-existing parties atlower rates just to reduce profit? (ii) Whether on the facts and circumstances of thecase and in Law, the Hon'ble ITAT was correct inshifting the burden, to prove the sales at low ratesto the AO, which is primarily of the assessee andallowed relief to the assessee even when assesseedid not discharge its onus of proving theunverifiable sales at low rates?” 3.We have perused the documents on record with theassistance of learned counsel appearing for the parties. Theissues concern the decision of the Assessing Officer to reject theassessee's book results and to make additions on the groundsthat the assessee had made sales at low rates and in some casessales were to non-existing parties. 4.The Tribunal in the impugned judgment examined relevantmaterial on record and came to the conclusion that the AssessingOfficer was not justified in rejecting the book results. TheTribunal also gave detailed reasons why the action of theAssessing Officer in comparing gross profit of other entities Priya Soparkar engaged in the same business was not justified or correct. Wealso notice that the CIT appeals had also given substantial reliefto the assessee. 5.Perusal of the order on record would show that the entireissue is fact-based. No perversity is pointed out in the conclusionof the Tribunal. No question of law arises. The tax appeals aredismissed. (M.S.SANKLECHA,J.) (AKIL KURESHI,J.)….