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2017 (1) TMI 1375 - HC - Income TaxSubstantial question of law - Assessment done u/s 153A - addition made on account of 'unaccounted purchases - Held that:- The learned counsel for the appellants had re- worded the substantial questions of law as framed in the appeal memoranda and as framed by this court at the stage of final hearing as on June 14, 2016 as above. It is evident from a reading of section 260A of the Income-tax Act that the appeal would lie to this court from an order of the Income-tax Appellate Tribunal only if there is a substantial question of law that arises for consideration. In Vijay Kumar Talwar's case (2010 (12) TMI 2 - Supreme Court of India ), the Supreme Court has held that it is mandatory for the High Court to formulate the substantial question of law on which the appeal would be considered. But that the expression "a substantial question of law" is not defined in the Income-tax Act. However, it has acquired a definite connotation through various judicial pronouncements. The principle that if a finding of fact is not challenged as being perverse, the High Court is bound to accept such finding. Therefore, as no such substantial question of law has been framed and the questions pertain to findings of fact, which cannot be said to be perverse as it is evident that the books of account of the respondent had been rejected by the assessing authority, in which case the same books of account could not be relied upon in an addition on account of trade creditors and also for arriving at the closing stock. There is no substantial question of law that arises for consideration and the findings of the Tribunal cannot be said to be perverse, as the reasons assigned by the Tribunal are certainly acceptable and do not warrant interference.
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