Cit Vs. Marcopolo - Court Judgment

Excerpt:
counsels: ms. nelu mathur for the applicant s.k. singhal, for the respondent head note: income tax reference--income from undisclosed sourcesaddition under section 68held: the question as to whether the tribunal was justified in law in deleting the additions on account of unexplained cash credit reflected in the books of account and holding that chapters xiv and xiv-b were mutually exclusive without appreciating the provisions of section 158bb(2) of the act, was to be referred to the high court. income tax act, 1961 s.256 income tax act, 1961 s.68 income tax act, 1961 s.158bb reference--question of lawaccounting methodheld: question as to whether tribunal was justified in law in deleting the additions on account of enhanced gross profit and on account of additional turnover holding that the entries recorded in the books of account could not be put to scrutiny under chapter xiv-b, despite the facts that irregularities and discrepancies were found by assessing officer in the books of account and assessing officer was constrained to make assessment in accordance with section 145, was to be referred to the high court. income tax act, 1961 s.256 income tax act, 1961 s.145 in the high court of rajasthan, jaipur bench y.r. meena & shashi kant sharma, jj. - orderheard learned counsel for the parties.2. considering the submissions, the tribunal is directed to refer the following questions for the opinion of this court :'1. whether in the facts and circumstances of the case, the itat was justified in law in deleting the additions of rs. 5,85,695 on account of unexplained cash credit reflected in the books of account and holding that chapters xiv and xiv-b are mutually exclusive without appreciating the provisions of section 158bb(2) of the act2. whether in the facts and circumstances of the case, the itat was justified in law in deleting the additions of rs. 16,74,123 on account of enhanced gross profit and rs. 32,66,487 on account of additional turnover holding that the entries recorded in the books of account cannot be put to scrutiny under chapter xiv-b, despite of the f acts that the irregularities discrepancies were found by assessing officer in the books of account and assessing officer was constrained to make assessment in accordance with section 145 of the act3. whether in the facts and circumstances of the case, the itat was correct in law in deleting the additions of rs. 72,78,632 on account of unexplained investment in marcopolo showroom?'the tribunal is further directed to refer the aforesaid question within three weeks from the date of receipt of certified copy of this order.3. the reference application under section 256(2) stands disposed of.

Judgment:
ORDER

Heard learned counsel for the parties.

2. Considering the submissions, the Tribunal is directed to refer the following questions for the opinion of this court :

'1. Whether in the facts and circumstances of the case, the ITAT was justified in law in deleting the additions of Rs. 5,85,695 on account of unexplained cash credit reflected in the books of account and holding that Chapters XIV and XIV-B are mutually exclusive without appreciating the provisions of section 158BB(2) of the Act

2. Whether in the facts and circumstances of the case, the ITAT was justified in law in deleting the additions of Rs. 16,74,123 on account of enhanced gross profit and Rs. 32,66,487 on account of additional turnover holding that the entries recorded in the books of account cannot be put to scrutiny under Chapter XIV-B, despite of the f acts that the irregularities discrepancies were found by assessing officer in the books of account and assessing officer was constrained to make assessment in accordance with section 145 of the Act

3. Whether in the facts and circumstances of the case, the ITAT was correct in law in deleting the additions of Rs. 72,78,632 on account of unexplained investment in Marcopolo showroom?'

The Tribunal is further directed to refer the aforesaid question within three weeks from the date of receipt of certified copy of this order.

3. The reference application under section 256(2) stands disposed of.