Facts of the Case

The matter arose from assessment proceedings in which the Assessing Officer made certain additions to the income of the assessee, Prakash & Co. The assessee challenged these additions before the Commissioner of Income Tax (Appeals), who granted partial or full relief.

Aggrieved by the relief granted, the Revenue preferred appeals before the Tribunal. Simultaneously, the assessee filed cross-objections challenging those aspects of the assessment that remained adverse even after the CIT(A)’s order.

The Tribunal was therefore required to adjudicate both the departmental appeals and the assessee’s cross-objections arising from the same appellate order.

Issues Involved

  1. Whether the additions made by the Assessing Officer were sustainable in law and on facts.
  2. Whether the CIT(A) was justified in granting relief to the assessee.
  3. Whether the grounds raised in the assessee’s cross-objections against remaining additions were valid.
  4. Proper interpretation of evidence and applicable provisions governing the disputed issues.

Petitioner’s Arguments (Revenue)

  • The CIT(A) erred in deleting or reducing the additions made by the Assessing Officer.
  • The assessment order was passed in accordance with law based on available material.
  • The relief granted to the assessee was unjustified and contrary to the facts of the case.

Respondent’s Arguments (Assessee)

  • The additions were arbitrary, excessive, or unsupported by evidence.
  • The CIT(A) correctly appreciated the facts and law in granting relief.
  • The cross-objections highlighted errors in the assessment order that still required correction.

Court Order / Findings

After considering the material on record and submissions of both parties, the Tribunal adjudicated the issues on merits and delivered a reasoned order.

  • Examined the validity of additions made by the Assessing Officer.
  • Evaluated whether the CIT(A)’s findings were legally sustainable.
  • Considered the grounds raised in the cross-objections.
  • Granted appropriate relief in accordance with law based on facts and evidence.

Important Clarification

  • The order was passed after full adjudication on merits.
  • Relief granted or denied was based on factual appreciation and applicable legal provisions.
  • The decision is confined to the specific facts and assessment years involved.
  • Each issue was decided independently based on the evidence on record.

 

Link to download the order -https://itat.gov.in/public/files/upload/1545220313-PRAKASH-70,71%20&%20CO-11&12%20(TAX).pdf

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