Affidavit of assessee not accepted as it was signed by some one else on behalf of the assessee

Affidavit of assessee not accepted as it was signed by some one else on behalf of the assessee and not by the assessee himself. High Court found no illegality in ITAT order.

ABCAUS Case Law Citation:
ABCAUS 2095 (2017) (10) HC

The Challenge/Grievance:
This instant Income Tax Appeal was filed under Section 260(A) of the Income Tax Act, 1961 (‘the Act’) by the assessee challenging the order passed by the Income Tax Appellate Tribunal (ITAT) which upheld the order of CIT in a case involving addition on account of unaccounted sales

Brief Facts of the Case:
The Assessing Officer (AO) received information from the Investigation Cell that during the course of survey in the case of a party it was found that the assessee had made purchases from the party under survey but not recorded the said purchases in its books of account.

AO issued a show cause to the assessee seeking explanation as to why the purchases made be not treated as sales made by the appellant assessee out side the books of account.

Finally additions were made by the AO by applying the net profit rate on such unaccounted purchases and on account of investment made in purchases.

The CIT(A) partly allowed the appeal. On second appeal by the assessee, ITAT decline to interfere with the findings of the CIT(A).

The ITAT inter alia found that one of the reason why the CIT(A)did not accept the affidavit filed by the assessee because the affidavit filed on behalf of the appellant stating that the she had not made any purchase from the party under survey could not be accepted because it was not signed by the appellant but by some one else.

Decision/Held:
The Hon’ble High Court did not find any illegality in the judgment of the ITAT and opined that the order passed by the ITAT needed no interference.