2007 PTD 31

Case Laws / Head Notes / Paras

Unexplained investment etc., deemed to be income---Addition on account of manufacturing of combed yarn from outside parties---Validity---Law required a piece of information covered under the term "definite information", which leads to believe that the income of the assessee had either escaped or under-assessed--Commissioner of Income Tax had not controverted the incorporation of expenses on account of manufacturing of combed yarn from outside parties in the subsequent period, after settlement of payment, there was no basis to reduce the expenses for addition and there was no basis for addition either with the assessing panel or with the First Appellate Authority---Addition made was deleted by the Appellate Tribunal having been made without any proper basis.