IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCHES : D : NEW DELHI
ITA No.844/Del/2013
Assessment Year : 2009-10
Jai Surgicals Ltd.,New Delhi.
Vs. ACIT,
ORDER
This appeal by the assessee emanates from the order passed by the CIT (A) on 20.11.2012 in relation to the assessment year 2009-10.
2. The only issue raised in this appeal through various grounds is against the confirmation of addition of ` 41,24,129/-. Briefly stated, the facts of the case are that the assessee is engaged in the business of manufacture and export of surgical blades. Note no.6 to the Annual accounts, attached with the return of income, read as under:-
“On an observations by auditor, it was been noticed that the Central government approval of contract for sale, purchase of blades and scalpels and for getting
job work done from M/s Razormed INC. (a partnership concern in which directors of the company are interested as partners) had expired on 01.04.2007 and
the company continued to make transactions their under without renewal approval from Central Government. Subsequent to the closure of financial year the company has got necessary approval from Central Government for the period 06.04.2009 to 31.03.2012 offence relating to the period 01.04.2007 to 05.04.2009 has been compounded by the Company Law Board on an application
DELHI BENCHES : D : NEW DELHI
ITA No.844/Del/2013
Assessment Year : 2009-10
Jai Surgicals Ltd.,New Delhi.
Vs. ACIT,
ORDER
This appeal by the assessee emanates from the order passed by the CIT (A) on 20.11.2012 in relation to the assessment year 2009-10.
2. The only issue raised in this appeal through various grounds is against the confirmation of addition of ` 41,24,129/-. Briefly stated, the facts of the case are that the assessee is engaged in the business of manufacture and export of surgical blades. Note no.6 to the Annual accounts, attached with the return of income, read as under:-
“On an observations by auditor, it was been noticed that the Central government approval of contract for sale, purchase of blades and scalpels and for getting
job work done from M/s Razormed INC. (a partnership concern in which directors of the company are interested as partners) had expired on 01.04.2007 and
the company continued to make transactions their under without renewal approval from Central Government. Subsequent to the closure of financial year the company has got necessary approval from Central Government for the period 06.04.2009 to 31.03.2012 offence relating to the period 01.04.2007 to 05.04.2009 has been compounded by the Company Law Board on an application