Shanti Prime Publication Pvt. Ltd.
Sec. 9 of Income Tax Act, 1961 – Income – Revenue in its appeal before High Court raised the legal issue that “whether the Appellate Tribunal could have disregarded the value of the unaccounted purchases made by the assessee and required additional tax to be imposed by taking into account notional sales when no corresponding sales had taken place during the relevant assessment year”.
High Court disposed of the appeal holding that:– The Appellate Tribunal merely directed the gross profit that the additional purchase was capable of generating to be regarded as the additional income for tax to be assessed on such basis. Such view of the Appellate Tribunal does not call for any interference. Being aggrieved, revenue filed SLP before Supreme Court. However, revenue withdrew the same. Thus, SLP dismissed as withdrawn – DIT Vs. LUFTHANSA GERMAN AIRLINES [2020] 269 TAXMAN 566 (SC)