TMI Blog2011 (3) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ransportation of the machinery from the factory of the supplier to the factory of the assessee where the machinery was installed. - no question of law arises – Appeal dismissed - ITA No.1092/2009 - - - Dated:- 23-3-2011 - CORAM: HON BLE MR. JUSTICE A.K. SIKRI HON BLE MR. JUSTICE M.L. MEHTA Appellant: Mr.Sanjeev Sabharwal, Sr. Standing Respondent: Mr. C.S. Aggarwal, Sr. Advocate with Mr.Prakash Kumar, Advocate. A.K. SIKRI, J. (ORAL) 1. For the assessment year 1996-97, the respondent/assessee filed its return of income declaring loss of Rs. 2,39,12,90,363/-. The assessee is engaged in the manufacturing of fertilisers at a plant installed at Shahjahanpur, Uttar Pradesh. In this assessment year, the assessee had, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of this appeal, the Assessee had filed written submissions on 6th December, 2004 objecting to the re-assessment. In his submission, the assessee had requested to institute following inquiries/providing the following documents: 1. An opportunity of corss-examination of Mr.Viren Ahuja. 2. Report of Settlement Commission of investigations made by it in this regard. 3. Copy of application of Bermaco Indus. Ltd. filed before Settlement Commission. 4. Evidence available with the department that the transactions with Bermaco Indus. Ltd. were accommodation entries. 5. An on the sport verification of the assets. 3. The grievance of the assessee was that the copy of the statement of Mr.Viren Ahuja, on the basis of which addition was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, at the same time, in his report, stated that it was physically impossible to verify each and every piece of machinery as valves had been placed from ground level to top of urea tower, which was about 100 meters in height. It was also stated that the physical appearance of valves gave the impression that these were quite old. To cross-check the quantitative description, the bigger valves of size 20 , 18 and 16 were checked and found to be correct. In another exercise, it was also found that valves of different sizes as detailed in assessee s submission in respect of said offsite section in some part were checked and the same were found to be tallying with the actual valves. The report also mentioned that as per the physical verification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound to set aside the order, namely, that Mr.Viren Ahuja was not even produced for cross-examination. We may record that the actual statement of Mr.Viren Ahuja has not been produced on record. It appears from the orders of the authorities below that Mr.Viren Ahuja had not disputed the supply of the machinery to the assessee. In fact he had stated that the machinery supplied to the assessee was not manufactured by the supplier itself and the benefit under Section 80IA was wrongly claimed by the said supplier and it is only on that account that the supplier had approached the Settlement Commission. Therefore, merely the fact that the supplier had gone to the Settlement Commission would not be of any relevance inasmuch the issue before the Set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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