AI Drafter 
TaxTMI 
TaxTMI 
2022 (3) TMI 1245
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....ertaining to Assessment Years 2013-2014 & 2014-15. 2. The Income Tax Appellate Tribunal vide the impugned order has inter alia deleted the addition of the sum amounting to Rs. 23,03,77,859/- made by the Assessing Officer and sustained by the CIT(A).The Principal Commissioner of Income Tax in the present appeal has challenged this finding of the Income Tax Appellate Tribunal on the ground that the ITAT was not justified in deleting the addition of Rs. 23,03,77,859/- made by the Assessing Officer under Section 69C read with Section 40A (3) of the Income Tax Act, 1961 on account of bogus purchase of "Tanki Milk" purchase. The appellant has also assailed the impugned order on the ground that ITAT was not justified in law in allowing relief t....
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....Mr.Sanjay Kumar learned counsel for the appellant stated that the CIT (A) in the appeal found the order of the Assessing Officer-based on material and information gathered during the search, as well in consonance with the judgment of this Court in the case of CIT (C)- III Vs. Kabul Chawla (2015) 61 taxmann.com 412 (Delhi). It was argued that the ITAT has wrongly deleted the addition on the ground that total purchases including Milk Tanki Purchases have been duly reflected in the books of account and a common entry of purchases in the books of account have been made to avoid multiple of hundreds of ledgers. Learned counsel also assailed the order of ITAT on the ground that ITAT has not appreciated the evidence correctly and the order suffers....
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....T (A) held that the addition made by the assessing officer under Section 69C of the Act was correct. 7. The assessee challenged the order before the ITAT. The ITAT after considering the entire material on record and submissions of the parties, inter alia, held that the purchases under the head "tanki" have been duly recorded in the books of account and is reflected in the audited financial statements. The total purchases including Milk Tanki purchases have been debited to the profit and loss account and the entire source of purchases are duly recorded in the books of account thus source of such purchase/expenditure stands established as having been incurred out of the funds shown in the books of account. ITAT further held that therefore ....
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.... reports which are then sent for processing and are entered in the process. The assessee also duly maintains the stock register, sale register and the assessee had duly filed the supporting documents. 9. Before proceeding further, it is necessary to examine the scope of 260A of the Act. Section 260A of the Act provides for an appeal to the High Court against a decision of ITAT. Sub-Section (1) of Section 260A of the Act provides for an appeal against the order of the Tribunal only on a substantial question of law. In a judgment delivered by this Court in which, one of us (Manmohan, J.) was presiding reported as 2021 SCC Online Delhi 4430 Principal Commissioner of Income Tax vs. Bhadani Financiers Pvt. Ltd it was inter alia held as under ....
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....nning and Mfg. Co. Ltd., AIR 1962 SC 1314, the apex court laid down the following tests to determine whether a substantial question of law is involved. The tests are (i) whether directly or indirectly it affects substantial right of the parties, or, (ii) the question is of general public importance, or (iii) whether it is an open question in the sense that issue is not settled by the Federal Court, Privy Council or the Supreme Court, or, (iv) the issue is not free from difficulty, and (v) it calls for a discussion for alternative view. There is no scope for interference by the High Court on a finding recorded when such finding could be treated to be a finding of fact. A finding of fact must, ther....