TaxTMI 
TaxTMI 
2007 (2) TMI 131
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....filed by the respondent-assessees. 3 For better appreciation of the fact of the case, first of all we shall take up Tax Appeal No. 9 of 2002. The respondent-assessee derives income from dealing in vegetable oil and edible oil, etc. The respondent also derives income from commission on sale of edible oil received from various manufacturers of the States other than erstwhile Bihar. The respondent used to issue Form No. F for all such goods to the consignor and on the basis of this Form No. F, the consignor used to get rebate from sales tax on the consignment sale in his own State. The allegation against the respondent was that he in the counterfoil of Form No. F used to enter lower price of goods than the actual price sent to the consignor....
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....red as Tax Appeals Nos. 32, 33, 34, 35, 36 of 2001. The Commissioner of Income-tax (Appeals) (in short "CIT(A)") after hearing the parties partly allowed the appeals and held that the matter needs reconsideration by the assessing authority. The appellant-Revenue, aggrieved by the said order of the Commissioner of Income-tax (Appeals), moved the Tribunal by filing appeals, which were registered as Tax Appeal Nos. 165, 166, 167 and 169 of 2001. The Appellate Tribunal after hearing the parties dismissed all the appeals and also allowed the cross-objection filed by the assessee against the finding recorded by the Commissioner of Income-tax (Appeals) on some issues. 5 Mr. K. K. Jhunjhunwala, learned counsel for the appellant-Revenue assailed ....
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....it came to the notice of the income-tax authorities that the respondent was consignment agent of various edible oil suppliers outside the erstwhile State of Bihar. In this process, the respondent used to issue Form No. F for all such goods to the consignor-supplier and the consignor-supplier used to get rebate on sales tax on consignment sale in its own State. It was held that the respondent in the counterfoil of Form No. F used to enter lower figure of sale on the consignment than the actual figure sent to the consignee and used to pay sales tax on the basis of lower figure of sales recorded in the counterfoil of Form No. F. The Assessing Officer, therefore, proceeded by observing that the respondent was not showing complete sale before th....
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....aterial on record to suggest that 'the sales tax had been collected and pocketed by the appellant. So far as the commission as disclosed in the income-tax return is concerned, vis-a-vis total consignment sale made even as per the Commercial Tax Department is correct and fully verifiable. There is no discrepancy in respect of 'arhat' commission vis-a-vis consignment sale. Learned counsel has also submitted that the Department has also not pointed out any discrepancy." 8 The Commissioner of Income-tax (Appeals) further held that unless the Income-tax Department proves by material fact that sales tax has, in fact, been realized and not paid, no addition can be made by resorting to surmises. In this connection, the appellate court further ob....
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....mmissioner of Income-tax (Appeals) in his order considered the submissions of the assessee that the Sales Tax Officer on the disclosed turnover has found that sales tax has been duly reflected in the books of account and was paid to the Commercial Tax Department. The Commissioner of Income-tax (Appeals) also took notice of the case of the appellant that no sales tax was realized since all the cash memos issued are for the net price of the goods sold and after deducting expenses and the commission receivable by the consignee, the balance amount was remitted by bank draft to the consignor. Noticing these facts, the court of appeal held that unless the Income-tax Department proves by material facts that sales tax has, in fact, been realized an....