COMMISSIONER OF INCOME TAX Vs. LUBTEC INDIA LTD.
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX
Lubtec India Ltd.
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(1.) OPERATIONS in the premises of the assessee, the Revenue recovered two sheets of paper marked as Annex. A72 in which
certain items were jotted down in pencil such as dinner, gift, projector, slide projector, etc., and some figures were
noted against of each item. Some of the items in those two sheets related to advertisements in newspapers, magazines
and hoardings, etc.
(2.) ACCORDING to the Revenue, the assessee had incurred expenditure, as mentioned in those two pages, and was thereafter asked to explain the source of the amount. In response, the assessee denied having incurred the expenditure.
It was submitted by the assessee that it did not have the amount of money reflected in those two sheets and was
incapable of spending the amount, that is, Rs. 29,51,278 which was mentioned in the documents. The AO was not
satisfied with the Explanation and therefore added back the amount to the income of the assessee.
(3.) FEELING aggrieved, the assessee preferred an appeal before the CIT(A) who allowed the appeal and deleted the addition. It was held that there was nothing to show that the assessee had incurred the expenditure.
The Revenue then preferred an appeal before the Tribunal and since that was dismissed, the present appeal under s. 260A of the IT Act, 1961, has been preferred before us.;
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