Tribunal dismisses Revenue and assessee appeals, upholds CIT(A) decision on sham purchases, and addresses filing delays

The Revenue's appeals were dismissed as the Tribunal upheld the CIT(A)'s decision regarding the treatment of purchases as sham purchases, limiting the disallowance to 25% and aligning with High Court precedent. The assessee's appeals were dismissed due to substantial filing delays without proper formalities. Consequently, all appeals were dismissed by the Tribunal on December 13, 2017.

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Issues:
Cross appeals by assessee and Revenue against CIT(A) orders for assessment years 1992-93 to 1997-98 regarding treatment of purchases as sham purchases and disallowance at 25%.

Analysis:
The appeals involved cross appeals by the assessee and Revenue against separate orders of the CIT(A) for various assessment years. The main issue revolved around certain purchases being treated as sham purchases by the Assessing Officer, leading to additions in the total purchases. The CIT(A) had restricted the disallowance to 25% of the purchases, providing relief to the assessee in respect of 75% of the total purchases. The Assessing Officer accepted the corresponding sales from these purchases, raising questions about the treatment of debit entries as income. The Tribunal referred to a similar case decided by the High Court, emphasizing the need to consider all expenses as debits and income as credits. The Tribunal declined to interfere with the CIT(A)'s decision, as no distinguishing decision favoring the Revenue was presented, and the facts aligned with the High Court's findings.

The Revenue's appeals were dismissed based on the above analysis. On the other hand, the assessee's appeals faced dismissal due to a significant delay in filing without proper formal request or adherence to delay condonation rules. Consequently, all appeals by both parties were dismissed, and the order was pronounced in open court on December 13, 2017.

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