INCOME TAX ACT, 1961

Section 143(3)

Assessment - Addition to income - AO made addition drawing inference on the basis of information from CESTAT pertaining to preceding year -

AO based on information emanated during earlier period from CESTAT, drew the presumption that practice of receiving unaccounted cash over and above the invoices price was existing in the year under consideration and accordingly, AO made addition. Held: Findings of CESTAT as limited to a specified period were not pertaining to period under consideration and AO merely relied on past year's findings and in absence of any material or evidence and only on presumptions, conjectures and surmises made additions which was not sustainable at all.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1998-99

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