2017 (11) TMI 519

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.... the Income Tax Act, 1961 ('Act') is directed against the order dated 19th September, 2016 passed by the Income Tax Appellate Tribunal, Delhi Bench ('ITAT') in ITA No.845/Del./2011 for the Assessment Year ('AY') 2006-07. 2. Although, while issuing notice on 17th May, 2017 this Court had directed that the instant appeal be listed along with ITA Nos. 141/2017 & 142/2017, however, learned counsel fo....

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....on by the Assessing Officer ('AO') by order dated 26th December, 2008 was done by invocation of Section 80-IA (10) of the Act. The said provision, at the relevant time, read as under: "80 IA (10) Where it appears to the Assessing Officer that, owing to the close connection between the assessee carrying on the eligible business to which this section applies and any other person, or for any other ....

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....5 of the Act before proceeding to deny the deduction under Section 80-IC of the Act read with Section 80-IA. It is submitted that this was not even the case of the Revenue. 6. Mr Singh submitted that once it was shown as a fact that there was a close connection between the Assessee and the other entities through whom sales were made on the consignment basis, then even though the AO may have erred....

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....s may be reasonably deemed to have been derived therefrom". The adjective "reasonably" carries with it the responsibility of the AO to base his conclusion on some empirical data. 8. In the present case the AO's conclusion that the profits of the Assessee were "more than ordinary" was based on surmises and conjectures. During the course of his submission, Mr Singh sought to suggest that a 40% GP r....