| |
| The Tax Publishers2020 TaxPub(DT) 0221 (SC) : (2020) 275 TAXMAN 0012 INCOME TAX ACT, 1961
Section 261 Section 145(3)
Where the department preferred SLP to appeal against the judgment of Gujarat High Court in Pr. CIT v. Gokul Ceramics (P) Ltd. [R/Tax Appeal No. 204 of 2019 with R/Tax Appeal No. 205 of 2019, dt. 25-6-2019] : 2020 TaxPub(DT) 554 (Guj-HC), whereby the High Court held that the said show-cause notice was yet to be adjudicated by the Excise Authorities, thus, the same merely showed the material collected by the Excise Department suggesting the view of the department. Further, there was no independent material brought on record by the AO other than those which were already collected by the Excise Department and which were yet to be verified. Hence, the AO was not correct in rejecting assessee's books of account and estimating profit margin @ 25% of the suppressed sales, the Supreme Court dismissed the SLP on the ground of low tax effect, however, leaving the question of law open.
|
Appeal (Supreme Court) - Special leave petition - Accounting method - Rejection of books of account--Estimation
Department preferred SLP to appeal against the judgment of Gujarat High Court in Pr. CIT v. Gokul Ceramics (P) Ltd. [R/Tax Appeal No. 204 of 2019 with R/Tax Appeal No. 205 of 2019, dt. 25-6-2019] : 2020 TaxPub(DT) 554 (Guj-HC), whereby the High Court held that the said show-cause notice was yet to be adjudicated by the Excise Authorities, thus, the same merely showed the material collected by the Excise Department suggesting the view of the department. Further, there was no independent material brought on record by the AO other than those which were already collected by the Excise Department and which were yet to be verified. Hence, the AO was not correct in rejecting assessee's books of account and estimating profit margin @ 25% of the suppressed sales. Held: The Supreme Court dismissed the SLP on the ground of low tax effect, however, leaving the question of law open.
 SUBSCRIBE FOR FULL CONTENT
|