1999 (5) TMI 25

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....56,071 was nothing but a cooked up affairs to reduce the total income of the assessee and as such is not allowable?" The assessee, Basant Investment Corporation, claimed loss of Rs. 17,56,071 in purchase and sale of jute. The Assessing Officer found that originally the assessee has shown purchase of raw jute from Rohini Trader and Exporters Ltd. at Rs. 83,17,141. But, subsequently, it was stated by the assessee that the jute was purchased from four parties, viz., (1) Rohini Trader and Exporters Ltd. Rs. 25,72,048.07 ; (2) Senilis Trading Syndicate Ltd. Rs. 23,39,553.48 ; (3) Olympic General Trading Limited Rs. 26,44,721.06 and (4) Adarsh Commercial Co. Limited Rs. 7,60,818.91, totalling to Rs. 83,17,141.52 and sold it to the Dalhousie Ju....

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.... considered the facts and circumstances of this case. I have also looked into the evidences produced by the appellant before the Income-tax Officer. There is no doubt that the raw jute was actually sold and delivered to Dalhousie Jute Co. Ltd. The appellant-firm purchased such raw jute from four different sellers. All purchase and sale transactions of the appellant-firm are evidenced by contract notes, bills and vouchers and these transactions have been corroborated by the four seller companies as well as the said Dalhousie Jute Co. Ltd. The explanation given by counsel appearing on behalf of the appellant-firm in regard to the qualitywise difference is very clear. There is absolutely no difference between the total quantity of purchases ma....

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....e-tax Officer has not really appreciated the explanation given by the assessee which appeared to us to be quite convincing and acceptable. Similar is the position as regards the explanation of the assessee regarding absence of date of receipt on the receipted challans endorsed by the Dalhousie Jute Co. Ltd. and discrepancy in dates and outstanding amounts on account of receipts of payments by the assessee-firm from the Dalhousie Jute Co. Ltd. We also hold that the other allegations made by the Income-tax Officer are fully explained by the assessee-company and apart from mere suspicion, surmises and conjectures, there appears to be no valid ground for treating the loss suffered by the assessee in purchase and sale of raw jute. The transac....