M/S KISHAN CHAND CO.OIL IND.LT vs. THE COMMISSIONER OF INCOME TAX

ITA/21/2001HC Punjab & HaryanaPHHC01042047200127 January 2020Author: MR. JUSTICE AJAY TEWARI,MR. JUSTICE AVNEESH JHINGAN3 pages
AI SummaryDismissed

What were the facts?

The assessee, M/s. Kishan Chand Co. Oil Industries Limited, is an appellant before the High Court. The appeal is against an order dated 30.5.2000 passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, for assessment year 1983-84. The assessee had claimed purchases of Rs. 4,56,100/- from Verma Trading Company. The Assessing Officer added this entire sum to the income, stating that no such company existed at the given address. The CIT allowed three out of four transactions, noting octroi bills and bank payments, but sustained the addition for the fourth transaction. This was due to a discrepancy in vehicle registration numbers, lack of proof that goods related to the assessee, and a Rs. 10,000/- difference between the claimed transaction value and the bank payment.

What did the High Court hold?

The High Court held that the finding of the ITAT was a pure finding of fact and that the assessee's counsel had failed to demonstrate that this finding was based on a perverse reading of the evidence. Consequently, the Court concluded that no substantial question of law arose from the ITAT's order. The appeal was dismissed on the grounds that the ITAT's decision was a factual determination not amenable to appeal as a question of law. The operative direction was the dismissal of the appeal.

What were the issues?

1. Whether orders Annexures P-1 and P-4 are legally sustainable (question of law)? The assessee argued that the addition of Rs. 1,24,375/- is unsustainable because the premise of the assessing authority, that Verma Trading Co. Etah did not exist, was erroneous. Furthermore, the assessee contended that the addition is legally untenable as the reasoning for sustaining it, namely the absence of an octroi receipt, was negated by the presence of the octroi receipt in the record. The assessee also argued that the addition was based on mere presumptions and surmises, disregarding evidence. The revenue's contentions are not explicitly recorded in the judgment, beyond the fact that they supported the CIT's and ITAT's findings.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 27.1.2020 M/s.Kishan Chand Co. Oil Industries Limited

...... Appellant Versus The Commissioner of Income-Tax (Central) and another ..... Respondents CORAM : HON'BLE MR.JUSTICE AJAY TEWARI : HON'BLE MR.JUSTICE AVNEESH JHINGAN *** Present : Mr. Alok Mittal, Advocate for the appellant. Mr. Rajesh Katoch, Sr. Standing counsel with Ms. Pridhi Jaswinder Sandhu, Jr. Standing counsel for the respondents. *** AJAY TEWARI, J. (Oral)

1.

This appeal has been filed by the assessee under Section 260- A of the Income Tax Act, 1961 against the order dated 30.5.2000 passed by the Income Tax Appellate Tribunal, Chandigarh Bench (for short 'the ITAT') in income Tax Appeal No. 1093/Chandi/92 relating to assessment year 1983-84. The appellant has claimed following questions of law :- “i. Whether in the facts and circumstances of the case, orders Annexures P-1 and P-4 are legally sustainable ? ii. Whether in the facts and circumstances of the case, the addition of Rs. 1,24,375/- can be legally sustained especially in view of the fact that the basic premise a

The order continues below.

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