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2018 (4) TMI 1480 - HC - Income TaxAdditions as income from other sources u/s 69A - Bitumen Scam - Act of agent on behalf of principal - it was found that the contracted quantity of Bitumen was not delivered to consignees, whereas all the oil companies confirmed lifting of Bitumen. - Additions of the cost of short supply of Bitumen in the total income u/s 69A. - Held that:- If the appellant introduced M/S Pawan Carrier as its agent and by virtue of his authorization given in favour of M/S Pawan Carrier if the oil companies allowed M/s Pawan Carrier to lift the Bitumen and then M/s Pawan Carrier being an agent of this assessee did some unauthorized act, the appellant-assessee cannot escape the liability arising out of such unauthorized act of his agent. Mrely because payments have been received in the name of M/s Pawan Carrier the assessee cannot derive any benefit out of that and the assessee cannot be allowed to avoid the liability arising out of non- supply of Bitumen to the consignees. M/s Pawan Carrier has been held to be an agent of the assessee, the assessee would be liable for the shortfall in the quantity of Bitumen delivered by M/s Pawan Carrier. The amount received by M/s Pawan Carrier was on the basis of the authorization of the assessee as an agent of the assessee, therefore the assessing officer and the appellate authority as also the learned Tribunal has rightly taken a view based on the materials available on the record. The assessee was given opportunity to bring the proprietor of M/s Pawan Carrier and when he failed to bring the proprietor of M/s Pawan Carrier before the assessing officer, a notice was sent to M/s Pawan Carrier on which a reply was received that they had executed the work on behalf of the appellant-assessee, therefore no grave error leading to miscarriage of justice has been committed by the assessing officer. Decided against the assessee.
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