1996 (5) TMI 32

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....56(1) of the Act, registered as R.A. No. 192/Ind. of 1993 on May 27, 1994 : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deciding an appeal for which a petition before the Settlement Commission is already pending for disposal ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 1,13,602 and Rs. 5,50,635 added by the Assessing Officer on account of gross profit and investment in unrecorded purchases ? " Briefly stated, the facts of the case are that the assessee filed a petition before the Settlement Commission, Bombay, for the assessment years 1982-83 to 1988-89. The case was, however, heard during the pendency....

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....is not liable to be adopted as the basis for determination of the gross profit in the trading account. Aggrieved by the order of the Tribunal, the Department filed the application under section 256(1) of the Act. That application was rejected. The applicant thereafter filed this application under section 256(2) of the Act proposing the aforesaid two questions for direction. We have heard Shri D. D. Vyas, learned counsel for the applicant/Department, and Shri G. M. Chaphekar, learned senior counsel with Smt. Meena Chaphekar, for the non-applicant/assessee. Right at the threshold, counsel for the applicant did not press question No. (1) as the same was not agitated before the Tribunal and the Tribunal declined to refer the same on the linch....

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....hat the Assessing Officer solely depended upon the assessment order under the Madhya Pradesh Sales Tax Act as was revised by the revisional authority thereto. It is needless to say that the assessment order under the Madhya Pradesh Sales Tax Act, may be useful material for the income-tax authorities for the investigation, but the said order itself cannot be adopted en bloc for assessment of gross profit in the trading account. The additions of Rs. 1,13,602 and Rs. 5,50,635 are, therefore, vitiated. It is contended that the appellate order does not spell out the reasons as to why the assessment order passed by the sales tax authorities could not furnish a valid basis for the income-tax authorities, and for the additions. It is urged that th....