2009 (11) TMI 18

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....vely. 2. Learned counsel Mr.Balachandran appearing for the appellant submits that the following questions of law would arise out of the common order and has advanced his argument with reference to the questions of law, which are extracted below, though several other questions of law have been formulated in the memorandum of grounds of appeals:    "1. Whether the Appellate Tribunal is correct in law in concluding that the partial sustenance of the disallowance of the claim of the purchase of old bottles used in the business of the appellant even though there were no materials available on record to fortify the said partial disallowance?    2. Whether the Appellate Tribunal is correct in law in sustaining the acti....

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....see had made entries in the books of accounts as to the purchase of old bottles but those entries were not proved as genuine with relevant materials. The assessing officer has also disallowed a sum of Rs.14,82,288/- representing interest component on certain lease transactions, which was found by him as bogus. The claim of non-competing fee was also rejected.  The first appeal filed by the assessee was  disposed of on 15.12.2006, wherein the Commissioner (Appeals) after taking into consideration of the offer made by the Managing Director for a sum of Rs.74,50,000/- for taxation and also by approving the finding that there was a huge inflation of  purchase expenditure and having found that the exact quantum could not be arrive....

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....uthorities, the fact remains that such huge inflation has been accepted by the Managing Director of the company, who offered a sum of Rs.74,50,000/- for taxation. It is also found proved by the authorities below that a very huge purchase of old bottles has been made by the assessee through their employees. However, when questioned, the employees have categorically admitted before the authorities that they were forced to sign in the dotted lines and as such there is no proof for such huge purchase forthcoming from the assessee. The proof adduced has been rejected as stated above. The Commissioner of Income-tax (Appeals) has rejected the claim  of wastage of 4.50 percent as in the higher side, however, found with the available material t....