Assessee had exported Rice. Officers of Enforcement Directorate searched premises of assessee and alleged that it had mis-declared value of goods exported by it.On basis of show cause notice issued by Enforcement Directorate, Income tax department initiated proceedings under section 148 alleging that assessee had mis-declared value of goods exported by it Assessing Officer made additions on basis of record of Enforcement Directorate. CIT(A) allowed the appeal of the assessee. Tribunal affirmed the order of the CIT(A). On appeal, Tribunal held that since Enforcement Directorate had dropped proceedings against assessee and matter stood settled between assessee and Enforcement Directorate, foundation of proceedings under 1961 Act stood wiped out and, thus, there was no ground to make additions in returned income of assessee. Tribunal also recorded finding to effect that documents resumed by Enforcement Directorate related to subsequent assessment years and Income Tax Department could not make additions in returned income of a particular year with respect to which documents did not relate. On appeal the Court held that Tribunal is justified in deleting additions made by the Assessing Officer. No substantial question of law. (AY. 1988-99)
CIT v. Sachdeva & Sons (2024) 300 Taxman 211 (P&H)(HC)
S. 69 : Unexplained investments-Export of Rice-Search by Enforcement Directorate-Alleged mis-declaration of value of goods exported-Dropping of proceedings by Enforcement Directorate-Deletion of addition by the Tribunal is affirmed.[S. 148, 260A, FERA]
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