Undisclosed income

Additions on account of extrapolated sales ought to be restricted to the bills found in case of certain unaccounted sales bills — as held by PHHC in V M Spinning Mills v CIT — In favour of: The revenue.

Tribunal was justified in making an addition of Rs 20 lacs on account of unexplained investment made towards the working capital when level of sales made outside the books of accounts have been reduced.

Appeal — Assessee’s appeal which was not bona fide and does not raise substantial question of law is not maintainable under s 260A.

Decided on: 22 September 2011.