Principal Commissioner Of Income Tax 2 v. Indo Colchem Ltd

C/TAXAP/1047/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1047 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2VersusINDO COLCHEM LTD ==========================================================Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIandHONOURABLE MR.JUSTICE B.N. KARIA Date : 28/08/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 07.03.2018 raising following questions for our consideration: “1.Whether the Hon'ble ITAT erred in law and on facts by not holding that the AO had correctly rejected the Books of Account u/s 145(3) of the IT Act as he was not satisfied about the correctness or completeness of the accounts of the assessee ? 2.Whether the Appellate Tribunal has erred in law and on facts in deleting the addition of Rs.2,24,64,664/- made on account of addition of GP/NP which was based on past year's profit?” 2.The issue pertains to rejection of book reserves and making additions to the gross profit of the assessee, inter-alia, on the ground that other C/TAXAP/1047/2018 ORDER industries in the same business reflect higher profit. Commissioner of Income Tax (Appeals) partly deleted the addition. In further appeal, the Tribunal made complete deletion, inter-alia, on the ground that the Assessing Officer had ignored the effect of foreign exchange fluctuations. 3.Having heard learned counsel for the Revenue and having perused documents on record, we find that the issue is entirely fact based. The Tribunal has given detailed reasons and referred to the evidence on record. No question of law arises. Tax Appeal is dismissed. (AKIL KURESHI, J) ANKIT SHAH (B.N. KARIA, J)