2017 (2) TMI 36

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....s framed the following substantial questions of law: "(i) Whether in the facts and circumstances of the case the ITAT was justified in law and has not acted perversely in deleting the additions of Rs. 11947958/- on account of unexplained expenditure under Section 69C made by the Assessing Officer? (ii) Whether in the facts and circumstances of the case, the ITAT has not acted perversely and illegally in coming to the conclusion that the rejection of the books under Section 145(3) of the Act by the Assessing Officer as unjustified?" 3. The facts of the case are that the return of income for the assessment year 2001-02 was filed by the assessee on 31.10.2001 declaring a total income of Rs. 22,80,360/-. The case was selected for scrutin....

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....r consideration. It is not understood as to how there was such a huge export turnover in one year. That too in the first year of business and then there was substantial fall in the next year and subsequently there was no business of export in any of the years. This shows that this is not the regular business of the assessee. 4. Counsel for the appellant has contended that the identical issue was decided by the Court in the case of Commissioner of Income Tax vs. M/s. Bright Future Gems in DB Income Tax Appeal No.305/2008, decided on 02.11.2016 more particularly in para 5.1 to para 10 which reads as under: "5.1 He also relied on Commissioner Of Income-Tax vs M/S. La Medica, Delhi, 250 ITR 575 wherein it has been held as under:- "The fact t....

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....nly an instrument used by Satya Pal Jain, assessed was not involved in it, is a conclusion arrived at without any foundation. On the contrary it has been established by materials on record that assessed knew that the whole thing was a fictitious arrangement. Once it is accepted that the supplies were not made by Kalpana Enterprises to whom payments were alleged to have been made, the question whether the purchases were made from some other source ougth not to have weighed with the Tribunal as a factor in favor of the assessed. The conclusions of the Tribunal are, therefore, clearly erroneous, contrary to materials on record and have been arrived at without taking into consideration relevant material and placing reliance on irrelevant materi....