Law:

Section:

Section 143, read with section 256 of the Income-tax Act, 1961 - Assessment - Additions to income - Despite ample opportunities given to assessee, it could not prove genuineness of purchases of scrap from a particular party - On other hand, it was reported that no such party ever existed - Assessee did not adduce any material to contradict said report - Assessing Officer made addition on account of said fake purchases - Tribunal confirmed addition - Whether no referable question of law arose out of Tribunal's order - Held, yes FACTS The assessee purchased scrap on the last day of the accounting year, from 'KT'. The ITO held that 'KT' was a non-existing party and, added the said amount to the assessee's income. In appeal, the assessee sought to adduce additional evidence which was not allowed by the appellate authority but the appellate authority allowed the assessee's appeal on the different ground. On further appeal by the department, the Tribunal held that the refusal of the appellate authority to receive additional evidence in appeal was justified. It, however, disagreed with the approach and reasoning of the appellate authority on which he had allowed the assessee's appeal and, accordingly, allowed the revenue's appeal. The assessee's application for a reference under section 256(1) was refused. On application under section 256(2): HELD A reading of the ITO's order showed that ample opportunity was given to the assessee to prove the existence of the said 'KT'. The report of the ITO showed that no such party ever existed. The assessee was confronted with the said report, but he failed to adduce any material to contradict it. Accordingly, no referable question of law arose from the Tribunal's order. Note: The decision is in favour of the revenue. JUDGMENT B.P. Jeevan Reddy, CJ.- By this application under section 256(2) of the Income-tax Act, 1961, the assessee is asking the following five questions to be stated under section 256(2) of the Act: "1.Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that Kashmir Traders, Luck-now, was not a genuine party and that it never existed as a tenant and as…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492