2026 (4) TMI 245

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....er dated 10.04.2021. 2. The assessee has raised following grounds of appeal: "1. That the order passed by Ld. CIT(A). National Faceless Appeal Centre (NFAC) (hereinafter referred to as Ld CIT(A)) upholding the assessment order is had in law and on the facts of the assessee. 2. That the Ld. AO/ CIT(A) grossly erred on facts and in law to enhance the income of the appellant from Rs. 4,87,24,070 by an amount of Rs. 5,59,00,000 and determining the taxable income of Rs. 10,46,26,090 on wholly illegal and untenable grounds. 3. That the Ld. CIT(A) grossly erred in law in mechanically confirming the AO's action of (i) Rejecting the assessee's bonafied and consistently followed Percentage of Competition....

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....e twice which is bad in law and against the principle of Income Tax provision, it is prayed to be set aside. 8. That the penalty-initiated u/s 270A of the Act for the reason of under-reporting as well as mis-reporting of income is wholly illegal & untenable and is prayed not to be upheld. 9. That the Ld. AO as well as Ld. CIT(A) erred in law in not specifying the exact charge as to whether the initiation of penalty u/s 270A was for underreporting of income or misreporting of income. 10. That the interest charged u/s 234A, 234B and 234C of the Act is wholly illegal and untenable and is prayed not to be upheld. 11. The aforesaid grounds of appeal are without prejudice to one another. 12. The appell....

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....that the impugned additions were rightly made by the Ld. AO and dismissed the appeal vide order dated 09.05.2024. 4.1 Further aggrieved the assessee is in appeal before the tribunal. Although several grounds have been raised the sole substantive issue involved is the addition of Rs. 5,59,00,000/- made on account of sales not included in the profit & loss account. 5. Before us, Ld. AR has vehemently argued that the Ld. AO could not have disregarded the accounting policies consistently followed by the assessee over the years which have also been accepted by the department in preceding and succeeding years after scrutiny. He has further submitted the Ld. AO was not justified in making the impugned addition without rejecting the books of ....

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....ned income has been accepted in the intimation order u/s 143(1) of the Act. However, there was a difference of Rs. 22,43,020/- in the final tax payable due to change in tax rate under the special rate of income 10. 2023-24 Percentage of Competition Method (POCM) No Scrutiny Assessment The retuned income has been accepted in the intimation order u/s 143(1) of the Act 5.1 Further reliance has been placed by the Ld. AR on several decision of the Hon'ble Apex Court in support of his contentions, some of which are as under: (a) Excide Industries vs. CIT (358 ITR 295 (SC)) Hon'ble SC in the case of Exide Industries's [358 ITR 295 (SC)] has held that "since, a consistent view has been taken in favour of t....