2013 (2) TMI 151

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....ions of law, but on 06.12.2012, the appellant made a statement before this court not to press questions Nos. (A) and (C). Therefore, the following substantial questions of law arise for consideration only:- "(B) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified on facts and in law in confirming addition of Rs.6,16,150/- by invoking the provisions of Section 40(A)(3) without appreciating the evidence and the express provisions of law which finding is perverse? (D) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified on facts and in law in confirming additions of Rs.19,867/- being hypothetical interest on the purchase advance m....

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....has vehemently argued that the appellant has sold the wheat through M/s Shri Ganesh Trading Co. Naya Bazaar Delhi and such firm has made the payment. For the said amount, the cheques were issued from the bank account of the said firm to the seller i.e Shri Sai Baba Rice Traders and therefore, the said amount has been wrongly said to be in violation of Section 40A(3) of the Act. In support of such contention, learned counsel for the appellant relies upon the certificate (Annexure A-5) by Shri Sai Baba Rice Traders in respect of receipt of the six cheques of Rs.30,80,746/- and also a copy of the ledger account of M/s Shri Ganesh Trading Co. showing the issuance of the cheques of the aforesaid amount. The learned Assessing Officer found tha....

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....p. The appellant again relies upon his ledger account to prove that the payment was made for the purchase of petrol pump. In the ledger account (Annexure A-7) of the appellant, there is no reference that amount of Rs.6 lacs which was in pursuance of any agreement to sell. Learned counsel for the appellant contends that agreement to sell was the oral. Even if the agreement to sell was oral, the account books of the appellant should have contain an entry of payment of Rs.6 lacs for the purchase of petrol pump. Since, there is no such entry, we find that the findings of fact recorded by the authorities under the Act cannot be said to be unjustified. In respect of question No.E above, the authorities under the Act has added Rs. 18,002/- o....