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2019 (7) TMI 674 - HC - Income TaxDisallowance of expenses - freight and transportation paid to Venkata Subbareddy Transport Contractors and Subbareddy contractors - on enquiry AO found that transporters are not in existence - HELD THAT:- Mere production of crossed demand drafts was not sufficient to establish the stand taken by the assessee. When the AO was able to establish that there was no such person or transport company, the assessee set up another case by stating that there is another partner by name Rama Muni Reddy, who is also in Cuddappah. The said person has given a statement stating that they had nothing to do with the said business. Revenue preferred an appeal before the Tribunal. The Tribunal rightly reversed the finding of the CIT(A) and noted the fact that the transporters are not in existence has not been repelled by the assessee in the appeal proceedings and the CIT(A) merely accepted the plea of the assessee without any material or evidence on record. We find all these records are self-serving and these records do not dislodge the specific finding of the AO based on Commission issued to the ITO, Cuddappah referred above. Therefore, the assessee having not been able to establish by documents that the finding of the AO was incorrect, we have no hesitation to hold that the order passed by the CIT(A) is utterly perverse. According to the learned counsel for the appellant/assessee, the finding of the Tribunal is perverse. We do not agree with said submission as we have already held that the order of the CIT(A) is utterly perverse. Hon'ble Supreme Court of India in the case of Mangalore Ganesh Beedi Works Vs. CIT [2015 (10) TMI 1283 - SUPREME COURT] as held that there was no reason to reverse the finding of the fact particularly since nothing has been shown to conclude that the finding of fact was perverse in any manner whatsoever. It was further held that if the finding of the fact arrived at by the Tribunal were to be set aside, a specific question regarding a perverse finding of fact ought to have been framed by the High Court and in the said case, it was noted that the Revenue did not seek for framing of any such question. In this regard, the Supreme Court referred to the decision in the case of K.Ravindranathan Nair Vs. CIT [2000 (11) TMI 3 - SUPREME COURT] - Decided against assessee.
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