In Brief
Goodyear India Ltd appealed against the High Court's reversal of the Income Tax Appellate Tribunal's deletion of alleged undisclosed income. The assessee challenged reliance on two letters as admissions of non-disclosure. The Supreme Court held that letters sent in refutation with without-prejudice settlement offers cannot constitute admissions. Further, disclosure made by the parent company (Goodyear USA) in US proceedings cannot be attributed as undisclosed income of the Indian subsidiary unless it is shown that amounts were received in its accounts or spent under its instruction. The Court restored the ITAT's finding, setting aside the High Court's judgment.
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