GOODYEAR INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal under S. 260A of the INCOME TAX ACT, 1961 (in short 'the Act').

(2.) THE factual position noted in brief is as follows : For the asst. year 1987 -88 appellant, for the sake of convenience appellant is hereinafter referred to as 'assessee', filed its return of income. Several amounts were claimed on the following heads as expenditure :

(3.) IN support of the appeal it has been contended that when no adverse comments were given by the auditors in the tax audit (as the audit under S. 44AB of the Act is commonly described), the authorities should not have resorted to disallowance of A portion of the claim. It was highlighted that the purpose of a tax audit is to do away with the requirement of making routine additions, testing correctness of totals and corrections of total and verifications of the purchase and sales and to see whether they are properly vouched or not. It is also submitted that when details were produced, merely on the ground that all the entries could not be substantiated by vouchers, such a huge addition should not have been made.