2016 (7) TMI 917

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....acts and in the circumstances of the case, Income Tax Appellate Tribunal was right in law in confirming the addition of Rs. 6,95,310/- made by the Assessing Officer as suppression of sales?" 3. The facts giving rise to filing of this Appeal are as under :- The appellant a closely held company was engaged in the business of trading in cotton, dyes, chemicals etc. The appellant had filed its return of income tax for the Assessment Year 1997-98 on 26.11.1997 declaring total income of Rs. 53,547/- along with Tax Audit Report etc. During the course of assessment proceedings, it was found that the appellant was enjoying credit facility upto Rs. 20,00,000/- towards bills discounting. It was also found by the assessing officer that the bill disc....

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....ey had purchased 3000 kg of yarn from ASL for Rs. 3,15,157/- on 20.08.1996 and there was no purchase of any yarn from the appellant; the funds availed by the appellant from the Bank were utilized for making payment to ATPL and Saurashtra Ginning in course of the business. Being aggrieved by the order of assessment, the Revenue preferred an Appeal before the Tribunal challenging the impugned addition deleted by CIT(A). The Appellate Tribunal reversed the order passed by CIT(A) on the ground that the partial acceptance of the money had been received by the appellant and credited in its books of accounts so that they could not be said to be accommodation bills; two bills bearing same serial number were issued to ATPL. Being aggrieved by the a....

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....from ATIPL whether it purchased any YARN on 13/3/97 and 20/3/97 from the appellant. This was of utmost importance because the issue of suppressed sales could have been clinched by the sole evidence if the purchase of YARN was not recorded in ATIPL's books. 9. From the perusal of books of ATIPL, I find that they had purchased 3000 kgs. of yarns from ASL for Rs. 3,15,157/- on 20.8.96 and that they had not purchased any YARN from the appellant. 10. I find that the G.P. in yarn and cotton was 2.11% and 2.74% in A.Y. 95-96, 5.00% and 4.19% in A.Y. 96-97. In A.Y. 97-98, there was sale of cotton only where G.P. is 2.70%. Thus, the G.P. has been found varying very wildly from year to year. 11. The books of account of the appellant are ....

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....was no evidence on record to prove that the assessee had claimed all the expenses in the profit and loss account. In the above case, the Court while dismissing the Appeals held that in view of the concurrent findings of fact by the Commissioner (appeals) and the Tribunal that the reduced addition was just and equitable on account of paper found during the search, there was no merit in the Appeals. 5. Learned Counsel for the opponent Mr. Varun K. Patel has taken us to the reasoning adopted by the Tribunal and contended that in view of Section 69 of the Income Tax Act, this will amount to suppression and in that view of the matter, the Officer has not committed any error in assessing the income as a whole and contended that the issue is requ....