CIT-III v. Sterling Tools Ltd
[Citation -2015-LL-1120-21]

Citation 2015-LL-1120-21
Appellant Name CIT-III
Respondent Name Sterling Tools Ltd.
Court HIGH COURT OF DELHI AT NEW DELHI
Relevant Act Income-tax
Date of Order 20/11/2015
Judgment View Judgment
Keyword Tags block period • regular assessment
Bot Summary: This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against an order dated 23rd May 2003 passed by the Income Tax Appellate Tribunal in IT Appeal No. 5659 of 1996 for the block period 1st April 1985 to 29th September 1995. While admitting this appeal on 3rd February 2004, the following order was passed by the Court: Admit. The following question is required to be answered by the Court: Whether, considering Section 158B(a), 158BA(2) with the ITA No. 428 of 2003 Page 1 of 3 Explanations and Section 158(3) as also sub-clause of sub-section of Section 158B, it is open to the assessing officer to include the income of the assessee, which is not disclosed for assessment for the block period though the transaction relating to such income is reflected in the current year s account books The Paper books as per rules be supplied within a period of one month. Direct service is permitted under the signature of Court Master. Whether the valuation reports of the District Valuation Officer could form a basis for invoking Sections 158B(a) and 158BA read with the Explanations thereto to include the differential sum in the income of the Assessee notwithstanding the transactions stood already reflected in the books of account which were produced during the regular assessment ITA No. 428 of 2003 Page 2 of 3 proceedings 5. Following the aforementioned decision dated 19th February 2015 in ITA Nos. 120-125/2000, the Court answers the question in the negative i.e. in favour of the Assessee and against the Revenue.


$ * IN HIGH COURT OF DELHI AT NEW DELHI R-181. + ITA 428/2003 CIT-III ..... Appellant Through: None. versus STERLING TOOLS LTD. ....Respondent Through: Mr. C.S. Aggarwal, Senior Advocate with Mr. Prakash Kumar, Advocate. CORAM: JUSTICE S. MURALIDHAR JUSTICE VIBHU BAKHRU ORDER % 20.11.2015 1. This appeal by Revenue under Section 260A of Income Tax Act, 1961 ( Act ) is directed against order dated 23rd May 2003 passed by Income Tax Appellate Tribunal ( ITAT ) in IT (SS) Appeal No. 5659 (Del) of 1996 for block period 1st April 1985 to 29th September 1995. 2. While admitting this appeal on 3rd February 2004, following order was passed by Court: Admit. following question is required to be answered by Court: Whether, considering Section 158B(a), 158BA(2) with ITA No. 428 of 2003 Page 1 of 3 Explanations and Section 158(3) as also sub-clause (d) of sub-section (1) of Section 158B, it is open to assessing officer to include income of assessee, which is not disclosed for assessment for block period though transaction relating to such income is reflected in current year s account books? Paper books as per rules be supplied within period of one month. This appeal be tagged with ITAT Nos. 120 to 125 of 2000. Direct (Dasti) service is permitted under signature of Court Master. 3. Court has decided appeals ITA Nos. 120-125 of 2000 (Commissioner of Income Tax v. Nishi Mehra) on 19th February 2015. perusal of said judgment shows that issue has been decided in favour of Assessee and against Revenue. 4. question that arises in present case, also arose in those cases viz., whether valuation reports of District Valuation Officer could form basis for invoking Sections 158B(a) and 158BA (2) read with Explanations thereto to include differential sum in income of Assessee notwithstanding transactions stood already reflected in books of account which were produced during regular assessment ITA No. 428 of 2003 Page 2 of 3 proceedings? 5. Following aforementioned decision dated 19th February 2015 in ITA Nos. 120-125/2000 (Commissioner of Income Tax v. Nishi Mehra), Court answers question in negative i.e. in favour of Assessee and against Revenue. 6. appeal is accordingly dismissed. S. MURALIDHAR, J VIBHU BAKHRU, J NOVEMBER 20, 2015 dn ITA No. 428 of 2003 Page 3 of 3 CIT-III v. Sterling Tools Ltd
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