Declration of additional income by assessee cannot be disallowed under sec 10A without proper record

Last updated: 02 June 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Briefly stated facts of the case are that the assessee company is engaged in the business of manufacturing of Soya Oil. In the case of Ruchi Soya Group, a search and seizure action u/s 132(1) of the Income Tax Act 1961 (the Act) was carried out by the department on 17.11.2005 at their various premises located at Mumbai and Indore. The assessee company is a member of Ruchi Soya Group and was covered under the search action u/s 132(1) of the Act. In response to notice issued u/s 153A of the Act, the assessee filed return declaring total income of Rs. 5,16,64,918/- as against original return filed declaring total income of Rs. 4,91,64,918/-. The difference of Rs. 25 lacs in the return filed u/s 153A is the declaration made by the assessee during the course of search. However, the assessment was completed after making disallowance u/s 10A of the Act Rs. 65,14,829/- and disallowance u/s 14A Rs. 9,827/- on a total income of Rs,. 5,81,89,574/- vide order dtd. 24-12-2007 passed u/s 153A r.w.s. 143(3) of the Act. On appeal, the ld. CIT(A) partly allowed the appeal.

Citation :
General Foods Limited, 51, Broach Street, Ist floor, Kapadia Chambers, Mumbai. PAN: AAACG5677J (Appellant) Vs. Asstt. Commissioner of Income Tax- Central Circle 40, Mumbai. (Respondent)