SHARMA ALLOYS (INDIA) LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The assessee is on appeal as against the common order of the Income Tax Appellate Tribunal, Madras 'D' Bench dated 25.05.2009 in ITA. Nos. 802 and 803/Mds/2008 relating to the assessment years 2002-03 and 2003-04 raising the following questions of law:-

(2.) The assessee is a dealer in Iron and Steel. The assessee submitted that considering the recession in the Iron and Steel market and the resultant crisis thereon, they could not pay attention on accounting; in the circumstances, to buy peace with the department, the assessee offered an estimated addition of Rupees Four lakhs towards deficiencies in Gross Profit and Rupees Ten Lakhs towards discounting charges.

(3.) The Commissioner of Income Tax held that in the peculiar circumstances of the case, the assessee's offer be accepted and the Assessing Officer was accordingly directed to assess the additional estimate of income of Rupees four lakhs towards Gross Profit and Rupees Ten lakhs towards non business related discounting charges. He further viewed that in view of the submissions of the assessee and the facts of the case, the Assessing Officer's decision in not initiating penalty proceedings did not need any interference, in the circumstances, the assessment was set aside for the limited purpose of fresh consideration for further examination and decision as per the provisions of the Act.