2015 (9) TMI 1185

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....e proposed by the Appellant for our consideration the basic issue which has been raised is as under: "Whether the Tribunal after upholding the contention of the Appellant that the orders of the Assessing Officer & Commissioner of Income Tax (Appeals)[CIT(A)] were passed in breach of the natural justice in the absence of the cross examination, is correct in sustaining the orders on the basis of other circumstances?" 3. The Appellant is a partnership firm, engaged in trading in items like raw wool, synthetic waste and acrylic fiber. For the subject Assessment Year, the Respondent-Assessee filed its return of income, declaring a loss of Rs. 58.81 lakhs. During the course of the assessment proceedings, the Assessing Officer observed....

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....various surrounding circumstances such as sales made by a sister concern of the Respondent-Assessee Canon Steels Pvt. Ltd. to conclude that there was no crash in the market, warranting a loss. The Assessing Officer also noted the fact that it was the Assessee's case that it was in the business of selling raw wool in retail. This would requires workers to make small lots of 60 to 70 kg of raw wool. However, this was also not found believable as no amount on account of salary to employees and labour charges etc was debited to the Profit & Loss Account. 5. The Assessing Officer, thus concluded not only on the basis of the statements made by the three individuals to whom the Commission was issued but also on the basis of examination of o....