Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income Fact that customs authorities have taken market value of exported goods for purpose of customs duty could not be a ground to make additions in case of assessee unless there was any material to show that the assessee had in fact received more amount than what was shown in invoices/bills. [A.Y 1953-54] The assessee, a non-resident company, derived income mainly from export of manganese ore. Sometime in the year 1958, the customs authorities initiated proceedings against the respondent/assessee on the ground that the exports of manganese ore effected by the assessee were less than the market price which was in contravention of the customs Act. In the assessment proceedings, the Assessing Officer made additions on the basis of the amount computed by the authorities under the Customs Act for payment of the customs duty: Held that it was not in dispute that the Assessing Officer has made additions only on the basis of the market price determined by the customs authorities under the Customs Act. Admittedly, there was no evidence on recorded to show that the assessee had recovered any amount in excess of the invoice issued. The fact that the customs authorities have taken the market value of the exported goods for the purpose of customs duty could not be a ground to make additions in the case of the assessee unless there was any material to show that the assessee had in fact received more amount than what was shown in the invoices/bills. Therefore, the addition was not justified. JUDGMENT J. P. Devadhar, J.- 1. This application filed by the Revenue under section 256(2) of the Income-tax Act, 1961, was admitted on April 21,1998, on the following questions of law : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that there is no material to hold that the difference between the duty assessed by the Customs Department under section 30(b) of the Sea Customs Act, 1878, and the contract price shown by the assessee in the contract resulted in any additional income liable to income-tax to the assessee in the face of the finding of 'proven under…

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