COMMISSIONER OF INCOME TAX-I Vs. ABBOTT AGENCY

JUDGEMENT

(1.) THE revenue challenges orders passed by the Income Tax Appellate Tribunal, Chandigarh (for short, the Tribunal) and the Commissioner of Income -tax (Appeals) reversing the order passed by the Assessing Officer pertaining to assessment year 2008 -09. The revenue has framed the following substantial questions of law:

(2.) COUNSEL for the respondent submits by reference to the orders passed by the Tribunal and the Commissioner of Income -tax (Appeals) that tabulated receipts, reproduced in the order passed by the Commissioner of Income -tax (Appeals) clearly reveal that the receipts are shown in the account books, for the financial year 2005 -06. The Assessing Officer proceeded to raise an inference against the assessee as TDS certificates were received in the financial year 2007 -08.

(3.) THE Assessing Officer, issued a notice under Section 143(2) of the Income -tax Act, 1961 and held that as the assessee has received TDS certificates in the financial year 2007 -08, but has not disclosed money receipts in respect thereof, the assessee is liable to pay tax, penalty and interest. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income -tax (Appeals). The assessee placed his account books before the Commissioner of Income -tax (Appeals) and pleaded that TDS certificates received in financial year 2007 -08 relate to amounts received and shown in its account books for financial year 2005 -06. Taking cognizance of these facts and after examining the accounts in detail, the Commissioner of Income -tax (Appeals) accepted this plea, allowed the appeal and set aside the order passed by the Assessing Officer, by holding as follows: