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2015 (2) TMI 206 - HC - Income TaxBogus purchases - CIT(A) deleted the addition u/s 69C, u/s 40(a)(ia) and machinery repair & maintenance - Tribunal directed the assessing officer to assess income at a net profit rate of 6% and thereafter deleted all additions - Held that:- The impugned order suffers from a fundamental flaw. The Tribunal ignored the evidence relied by the assessing officer particularly the reference to variation in the name of the party on the voucher and the corresponding bill, variation in description of purchases on the voucher and the corresponding bill, variation in rates of the same item of purchase etc. The assessing officer also referred to failure of the assessee to prove the existence of these parties and while doing so did not merely rely upon absence of a sales tax registration number/ or absence of registration with the Pollution Control Board (as held by the Tribunal) but also sought a report from an inspector who found that these parties did not exist at the addresses mentioned in the bills. The Tribunal having ignored relevant facts, in our considered opinion, has committed an error of jurisdiction.Tribunal has erred in applying a net profit rate without considering the material collected by the assessing officer and by ignoring relevant facts and factors referred to by the assessing officer, thereby leading to miscarriage of justice and an error of jurisdiction that must necessarily be rectified by the Tribunal itself. - Decided in favour of revenue.
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