TMI Blog2015 (8) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... or in possession for the purpose other than specified which was wrongly interpreted by the Assessing Officer. It was rightly noticed that a letter had been written on 22.9.2009 by the assessee that the sugar had already been sold to various parties and a complete list of the parties had been given to the Deputy Commissioner/Deputy Magistrate on 1.10.2009. Once the said parties had confirmed the purchase which had been duly supported by the bills and they were regular traders and were unrelated to each other, therefore, the allegation made was held to be without any basis. The said findings pertaining to the goods lying at the spot and whether the purchases had been made on credit basis and thereafter sold are all questions of facts which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came to the finding that the sugar purchased had been duly recorded in the books of accounts, which are duly audited; there is nothing on record to show that the purchases had been made outside the regular books of accounts; in the absence rejection of account books and of any adverse material, the addition of the income was held not to be justified. 2. The substantial questions of law are sought to be raised by the Revenue for consideration of this Court are as under:- i) Whether on the facts and in the circumstances of ; the case the ITAT is right in law in not considering that credit purchases and sales stated to be recorded in the books of account are sham transactions and an afterthought after the seizure of goods by Food Civ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding circumstances. vi) Whether on the facts and in the circumstances of the case the ITAT is right in law in ignoring the fact that all the parties who purchased and sold sugar have done transactions without making actual payments and such kind of transactions i.e. as is where is basis were never done in their business and thus afterthought. vii) Whether on the facts and in the circumstances of the case the ITAT is right in law in ignoring the facts that purchases shown by the assessee are nothing but accommodation by various parties as these were mere bills without the transactions of payments. viii) Whether on the facts and in the circumstances of the case the ITAT is right in law in giving a finding that the Department h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upta, who was Manager with M/s Gitansh International Limited, who was owner of the godowns which had been let out, was also taken into consideration by the Assessing Officer. The persons, who had purchased the sugar and sold on as is where is basis were also examined. The Assessing Officer disbelieved the assessee that the sugar had been purchased on credit though noticing that the parties had issued bills and accordingly added a sum of ₹ 26,64,68,073/- in the assessment order dated 30.12.2011. 5. The assessee took the matter in appeal, which was dismissed on the ground that Bharat Bhushan, the proprietor, before the Food Supplies Department, had admitted that he owned the sugar which had been purchased from different sources but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent receipts issued by M/s Gitansh International Limited to the said vendor and the confirmations and the ledger accounts of the appellant in the books of the said vendors were also noticed. Merely because the bills were not shown to the raiding party which is the Department of Food Civil Supplies and the statement given to the said department would not have any applicability for deciding the issue in hand. The question involved before the said authority was whether that much amount of sugar was permissible to be kept. 7. Once the delivery of the sugar was taken over on as is where is basis at the godowns itself by taking the same on rent with the consent of the landlord and it has been noticed that the Manager's statement was rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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