2011 (1) TMI 435

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....ferred to as "the Tribunal"), in ITA No. 917/CHANDI/ 2009, for the assessment year 2003-04, claiming the following substantial questions of law:-   "(i) Whether the order of the Income Tax Appellate Tribunal is perverse in the eyes of law in allowing the expenditure on purchases of coal from three parties but disallowing the same in respect of fourth party M/s North East Coal Mining despite the same documentary evidences having been brought on record by the appellant in respect of purchases made from all the four parties?   (ii) Whether the order of the Income Tax Appellate Tribunal is perverse in the eyes of law in sustaining the disallowance of the expenditure on purchase of coal from M/s North East Coal Mining by relying ....

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....-03 as well. This finding of the Assessing Officer was upheld by the CIT (A) and affirmed by the Tribunal. The Tribunal while upholding the aforesaid disallowance had recorded as under:-   "9. We have considered the rival submissions carefully. In this case, the impugned disallowance has been made primarily for the reason that during the course of assessment proceedings for assessment year 2002-03, the Assessing Officer conducted enquiries through his counterpart at Gauhati and found that the purchases of coal effected by the assessee from certain parties were not genuine. The Income-tax authorities at Gauhati reported to the assessing officer that the parties could not be traced at the addresses stated. For the above reason, certai....

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....ecided in the same light. Ostensibly, the genuineness of purchase made from the said three parties is to be made on the basis of the material and the evidence on record. In this light, we have considered the material referred to by the assessee in its Paper Book. In this regard, the requisite evidence of transportation is available in the Paper Book. An evidence by way of Inward-Challans issued by Haryana Sales Tax Authorities, wherein the names of the consignor, being the three parties in question is also available on record. Furthermore, the certificate issued by the Sales Tax Authorities in Assam pertaining to the three parties have also been placed on record. All these evidences have been merely brushed aside by the Assessing Officer an....