2019 (7) TMI 1054

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (PER : HONOURABLE MR.JUSTICE J. B. PARDIWALA) 1 This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act, 1961") is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, "D" Bench, Ahmedabad dated 15th November 2018 in the ITA No.352/Ahd/2014 for the assessment year 2008-09. 2 The Revenue has proposed the fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 26.1 It is a fact on record that no prudent businessperson will sell the goods at losses. However, in case the assessee has committed to supply goods at an agreed price without having any escalation clause in the agreement then the assessee is duty bound to supply the goods at the same rate, despite the fact the price of raw material cost has increased. Thus, whatever loss has been incur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....udent businessperson would sell the goods at a price less than the cost. Indeed the observation of the AO appears to be correct, but there was no evidence brought on record to prove the submission of the assessee wrong, i.e. the sale was made at loss. There was also no allegation that the assessee has sold the goods at a higher value but declared the same at a lesser value in the books. Thus in th....