TaxTMI 
TaxTMI 
2008 (1) TMI 11
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....s in short are as under:- 4. The appellant-firm (hereinafter referred to as 'the appellant-assessee') is carrying on business as Commission Agent in raw hides and skins. The raw hides and skins comprises of buffalo hides, cow hides, katta and katai or goat and sheep skins. The goods are brought in the Mandi (market) by Vyaparis (traders) through trucks. These Vyaparis go to different Arhatdaars (Commission Agents) of their choice where they get the goods counted. The amount is first entered in the Bilti Register, after that bundles are prepared and each Vyapari is given his Lot Number. Sometimes, the Vyaparis requested the Arhatdaars (Commission Agents) to pay the freight charges of the trucks. The Arh....
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....order dated 13.03.1987 framed under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') has treated the appellant-assessee as 'a Trader' and not as 'a Commission Agent' and assessed its total income Rs.4,06,810/- for payment of income tax. He issued penalty notice under Section 271(1)(a) and 271(1)(c) and 273(2)(a) of the Act, separately. 7. Being aggrieved, the appellant-assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax vide order dated 04.04.1988 partly allowed the appeal. The appellant-assessee and the respondent-Income Tax Department feeling aggrieved against the order of the Commissioner of Income Tax filed two separate appeals....
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....rder by holding as follows:- "The appeal relates to a fairly old year, for which reason the scope for enquiry has been reduced, now. In my opinion, it was rather arbitrary to treat the appellant as dealer in respect of outside U.P. parties who did not appear before the A.O. while accepting him as an 'Arhatiya' in respect of those who appeared before the A.O. The A.O. did not get any enquiry done from the said 'Arhat Market'. Therefore, in my opinion, it is no longer desirable to stretch this dispute. Accordingly, the A.O. is directed to accept the appellant as an 'Arhatiya' for this year and also to accept the profit from commission shown by him." 10. The Revenue, feeling aggrieved, preferred an appeal be....
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....s conducted by the appellant-assessee of the same goods in the same manner as was conducted with the traders whose evidence was accepted by the Assessing Authority. 12. Per contra, the learned senior counsel appearing on behalf of the respondents has sought to support the order of the Assessing Authority which has been confirmed by the Appellate Tribunal as well as by the High Court, contending that this Court in exercise of its discretionary jurisdiction under Article 136 of the Constitution of India shall be slow in interfering the well-reasoned orders of the authorities and the High Court based upon the proper appreciation of the facts in issue and the law. 13. Having considered the respective contentions of the learned couns....
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....rader' in respect of dealers who are now living outside the State of U.P. The appellant-assessee could not be treated unequally between those traders who had appeared before the Assessing Authority and supported the claim of the appellant-assessee and on the contrary drawing adverse inference against the appellant-assessee for non-appearance of other five traders to whom summons of the Assessing Authority could not be served. On this ground itself, the order of the Assessing Authority cannot be found reasonable, tenable and justified. As noticed above, the Assessing Authority for the assessment year 1983-84 had accepted the claim of the appellant-assessee having acted as Commission Agent in respect of the same articles whi....