C I T JAIPUR vs. SHANTI KUMAR CHORDIA

By way of this appeal, the appellant has made following prayers : (i) the order dated 26.06.2009 (Ex-3) passed by the learned Tribunal for the Assessment year 2005-06, may kindly be quashed and set aside and the assessment dated 26.12.2007 (Exhibit- 1) may kindly be restored and the aforesaid substantial questions of law may kindly be answered in favour of the appellant-revenue; (ii) any other substantial questions of law which this Hon'ble High Court deem fit and if satisfied that the present case involves such question may kindly be formulated and heard in terms of the provisions of proviso to sub-section 4 of Section 260A of the Act of 61; (iii) determine any issue which has not been determined by the Tribunal or has been wrongly determined by the Tribunal, in terms of the provisions of Section 260A(6) of the Act of 61. 2. This Court while admitting the mater on 09.11.2010, has framed the following substantial questions of law : (i). Whether the Tribunal was right and justified in on one hand holding the purchase made by the assessee as unverifiable and consequently upholding the rejection of books of accounts under Section 145(3) of the Act and simultaneously on the other hand deleting the entire addition of Rs.23,97,454/- made by the Assessing Officer and confirmed by the CIT(A) to merely Rs.5,00,000/- without giving any finding at all ? (ii). Whether the order of the Tribunal is perverse and contrary to its own finding when even after holding that the purchases are unverifiable and books of accounts are defective, the addition made by the Asessing Officer on the same ground has been deleted and assessee's appeal has been substantially allowed ?

Though served none appeared for the respondent.

Counsel for the appellant contended that issue is now squarely covered by the decision of this Court in CIT Vs. M/s Gems Paradise, Income Tax Appeal No. 201/2010, decided on 2.11.2016 wherein in paragraph 3 and 4, it has been held as under:

Considering the law declared by the Supreme Appeal (C) No.8956/2015 decided on 06.04.2015 whereby the Supreme Court has Tax Appeal No.240/2003 decided on 20.06.2016, the parties are bound by the principle of law pronounced in the aforesaid three judgments.

We remit back the case to the Assessing Officer for deciding afresh on the factual matrix. The authority will accept the law but the transaction whether it is genuine or not will be verified by the Assessing Officer on the basis of the aforesaid three judgments. The issues are answered accordingly. The appeal is accordingly disposed of.

In view of the above, the matter is remitted back to the Assessing Officer to reassess the matter on the basis of 25% as held in the earlier cases.

Both the issues are decided in favour of the Department against the assessee.