INCOME TAX ACT, 1961

Section 260A

Appeal (High Court) - Disallowing sample expenses and addition of undisclosed stocks in relevant to purchases - No substantial question of law -

Assessee was an exporter of cotton garments, cotton fabrics, made-ups and silk fabrics and goods. AO completed the assessment by disallowing sample expenses and made addition of undisclosed stocks in relevant to purchases. CIT(A) allowed the appeal partly. Tribunal remanded the matter back to AO to reconsider the expenditure for made-ups. AO sought details from assessee and by order Department held that assessee could not produce the Inventory register to verify the correctness of the claim. Assessee had not incurred any expenses on lorry receipt in the books and claimed that goods were received on “ Paid Lorry Receipt” basis and that assessee could not produce all the lorry receipts to verify the subsequent entries for the goods received. CIT(A) partly allowed the assessee's appeal. Tribunal once again examined the factual position placed by the assessee before AO and also verified the details which were culled out during assessment proceedings after the remand order of Tribunal in the earlier round of litigation and dismissed Revenue's appeal. Held: This was the second round of litigation and the first round culminated with the order of the Tribunal, remanding the matter to AO who had done some factual exercises. CIT(A) examined the matter and rendered a finding by partly allowing assessee's appeal. Thereafter, matter was taken before Tribunal in the way of appeal by the Revenue, wherein the findings of CIT(A) were re-examined by Tribunal, and Tribunal, after assigning independent reasons, affirmed the order of CIT(A). Thus, there was no question of law, much less the substantial question of law, arose in this appeal.

Affirmed:ITO v. Rasi Export Pvt. Ltd. [I.T.A. No. 2099/Chny/2017, dt. 18-7-2019]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2006-07

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