COMMISSIONER OF INCOME TAX Vs. KAILASH GROVER

JUDGEMENT

(1.) THE revenue has approached this Court by invoking the provisions of Section 260(A) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by challenging order dated 10.5.2013 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh in ITA No. 486/Chd/2011 and ITA No. 356/Chd/2011 in respect of assessment year 2007 -08. It has been claimed that the following substantial questions of law would arise for determination before this Court.

(2.) IT would be apropos to narrate the facts which have given rise to the present appeal. The assessee had filed a return on 21.10.2007 by declaring an income at of Rs. 5,72,340/ - against a gross receipt of Rs. 1.12 crores and claimed the expenses of Rs. 82,00,602/ - out of which a sum of Rs. 60,01,578/ - was towards the job work and Rs. 21,99,024/ - was towards fabrication charges. The income of the assessee was assessed under sub Section (1) of Section 143 of the Act on 18.3.2008 and thereafter selected for scrutiny. Accordingly, a notice dated 29.9.2008 under sub Section (2) of Section 143 was issued, which was served upon the assessee, on 30.9.2008. On 7.1.2009 a questionnaire was also served upon assessee and on the basis of the reply to the questionnaire the Assessing Officer issued a fresh notice dated 19.1.2009 under sub Section (2) of Section 143 and sub Section (1) of Section 142 of the Act.

(3.) ON the basis of the report the Assessing officer arrived at a conclusion that the assessee had shown fictitious payments purported to be on account of business expenses. The Assessing officer also found that copies of the bills produced by the assessee appeared to be largely in the same format and thus, arrived at a conclusion, that the assessee concealed the income by not furnishing the correct particulars of its income and accordingly an addition of Rs. 60,01,578/ - to the total income was made and initiation of the penalty proceedings under Section 271(1)(c) of the Act was also ordered.