Can AO take the valuation of purchases on which customs duty was payable as the amount of actual purchase?

This Income Tax Appellate Tribunal case concerns whether the Assessing Officer (AO) can treat the value of purchases subject to customs duty as the actual purchase amount. The appellant argues that the AO erred in confirming an addition of Rs 12,22,301 to their income based on this valuation, alongside other additions for unexplained expenses. The tribunal will review the AO's methods and adherence to natural justice principles in this assessment year 2016-17 appeal.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI “SMC-2” BENCH: NEW DELHI
(THROUGH VIDEO CONFERENCING)

BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
ITA No.9684/Del/2019
Assessment Year : 2016-17

Rohit Dhupar,
D-942, New Friends Colony,
New Delhi-110065.
PAN-AAFPD5114P
APPELLANT 

vs 

ITO,
Ward-28(1)
New Delhi.
RESPONDENT

Appellant by Sh. Amit Kaushik, Advocate
Respondent by Sh. R.K.Gupta, Sr.DR

Date of Hearing 25.05.2021
Date of Pronouncement 14.06.2021

ORDER

PER KUL BHARAT, JM :

This appeal filed by the assessee for the assessment year 2016-17 is directed against the order of learned CIT(A)-10, New Delhi dated 24.10.2019. The assessee has raised following grounds of appeal:-

1. “That the CIT(A) grossly erred in law and on the facts and circumstances of the case in confirming an addition of Rs 12,22,301/- to the income of the Appellant.

2. That the CIT(A) grossly erred in law and on the facts and circumstances of the case in confirming an addition of Rs 12,22,301/- to the income of the Appellant by dismissing the appeal in-limine.

3. That the CIT(A) as well the Ld. AO grossly erred in law and on the facts and circumstances of the case in confirming an addition of Rs. 12,22,301/- without following the principles of natural justice. 

4. That the CIT(A) grossly erred in law and on the facts and circumstances of the case in confirming an addition of Rs.12,22,301/- without appreciating the fact that the Ld. AO had taken the valuation of purchases on which the customs duty was payable as the amount of actual purchase.

5. That the CIT(A) grossly erred in law and on the facts and circumstances of the case in confirming an addition of Rs. 10,97,554/- to the income of the Appellant on account of unexplained expenses.

6. That the CIT(A) grossly erred in law pnd on the facts and circumstances of the case in confirming an addition of Rs. 1,22,747/- to the income of the Appellant.

7. That on facts and in law, the Ld. AO erred in initiating penalty proceedings under section 271(1) (c) of the Income Tax Act, 1961.

8. The Ld. AO has erred in levying interest under section 234B and 234C .of the Act.

9. The Appellant craves for leave to add, amend, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal.

10. That all the grounds are without prejudice to each other.” 

To know more in details find the attachment file