FABULA TRADING CO PVT LTD Vs. ITO
INCOME TAX APPELLATE TRIBUNAL
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Sushma Chowla, Judicial Member -
(1.) THIS appeal by the assessee is against the order of CIT(A)-V, Mumbai dated 24.03.2005 relating to Assessment Year 2001-02 and arises out of the assessment completed under Section 143 (3) of the Income Tax Act, 1961
(2.) The assessee has raised the following grounds of appeal:
1. The CIT (A) erred in confirming the addition of Rs. 1178,918/- made by the Assessing Officer by invoking the provisions of Section 92 of the I.T.Act, 1961.
2. The CIT (A) without any evidence on record and purely on presumptions, surmises and conjectures observed that the appellant had consciously contracted at lower rates with related concerns in order to show less than normal profits.
3. The CIT (A) failed to appreciate that if the purchase price and sale price shown by the appellant company are not being question which the customs record go to corroborate and at the same time the Assessing Officer has no evidence in his possession to show that the assessee had contracted at a lower rates with related concerns, the addition cannot be made to the gross profit shown by the assessee.
4. The order of the CIT (A) confirming the addition ofRs.11, 78,918- is bad in law and without jurisdiction.
Mr. B. V. Jhaveri, learned Counsel appeared for the assessee and Mr. Mohit Jain, Departmental Representative appeared for the revenue and put forward their contentions
(3.) THE only issue in the present case is against the addition of Rs. 11,78,918/- made on account of sale to related concerns made by invoking the provisions of Section 92 of the I.T.Act.;
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