2014 (4) TMI 847

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....e Mr. Justice Akil Kureshi) 1. Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 25.1.2012 raising the following questions of law for our consideration : "A. Whether on facts and circumstances of the case and in law, the Tribunal is correct in law in reversing the decision of the CIT(A) by holding that the addition of Rs.13.74 la....

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....ax Act, 1961 for alleged investment in purchase of clothes for processing and the job work charges paid for the same by the assessee. The other issue pertains to addition of Rs.24.80 lakhs (rounded off) made by the Assessing Officer for the alleged evasion of excise duty made by the assessee. 3. The assessee was engaged in processing of fabrics. It was subjected to proceedings for evasion of ce....

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....ion 69 of the Act and another was Rs.24.80 lakhs on the premise that the assessee through unauthorised processing had evaded excise duty of the said sum which was its additional income. 5. Both these disputed additions were confirmed by the CIT(Appeals). The assessee therefore, approached the tribunal. The tribunal in the impugned judgement deleted both the additions. With respect to addition o....

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....addition." 6. With respect to addition of Rs.24.80 lakhs, the tribunal noted as under : "With regard to this addition also, we find merit in the contention of the Ld. A.R. that there is no basis with the AO for drawing adverse conclusions. Though the Excise authorities have quantified the amount of duty evasion, there is no material on record to suggest that the assessee did collect the said....