Home › Tax Laws › Goodyear India Ltd. v. CIT ( 2019) 311 CTR 260/ 183 DTR 57 / ( 2020) 269 Taxman 6 (SC),www.itatonline.org Editorial: From the judgement in CIT v . Goodyear India Ltd ( 2008 ) 9 DTR 107/ 173 Taxman 377 (Delhi) (HC)

Goodyear India Ltd. v. CIT ( 2019) 311 CTR 260/ 183 DTR 57 / ( 2020) 269 Taxman 6 (SC),www.itatonline.org Editorial: From the judgement in CIT v . Goodyear India Ltd ( 2008 ) 9 DTR 107/ 173 Taxman 377 (Delhi) (HC)

S. 143(3): Assessment – Method of accounting -Undisclosed income – Admission by a letter without-prejudice offer cannot be treated as admission of non-disclosure or as an unconditional offer to pay tax. Also, the disclosure is by the USA Co and not by the assessee- It is not the case of the Dept that the amount has been received in the accounts of the assessee or spent for and on behalf of the assessee so as to be treated as undisclosed income of the assessee. [ S.69, 145 ]

Question raised before the High Court was “ whether the Income tax Appellate Tribunal was correct in law deleting the undisclosed income of the Assessee as recoded by the Securities and Exchange Commission in USA ?”

High Court reversed the order of the Tribunal placing reliance on two letters written by the assessee and assumed that it was in the form of admission of non -disclosure  and an offer was given by the assessee to pay tax and penalty as the case may be .  Reversing the order of the High Court the Supreme Court held that,  a letter written in rebuttal  of allegations contained in a news items with a without-prejudice offer cannot be treated as admission of non-disclosure or as an unconditional offer to pay tax. Also, the disclosure is by the USA Co and not by the assessee. It is not the case of the Dept that the amount has been received in the accounts of the assessee or spent for and on behalf of the assessee so as to be treated as undisclosed income of the assessee. (Note : Order in CIT v  Goodyera India Ltd  ( Delhi) (HC) (ITA No 223 of 2005 dt 28 -04 2008)  is set aside . ( CA Nos. 7703-7707 of  2012, dt. 16.10.2019) (AY. 1972 -73 to 1976 -77)