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TMI Blog2015 (9) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... me facts and questions of law have not been considered. Moreover, further evidence was called for by the order of the earlier Division Bench dated 26.11.2014. We may have considered the matters ourselves. However, as the issues of fact and appreciation of evidence are involved, it would be appropriate that the same are decided by the authorities under the Income Tax Act, 1961 (hereafter referred to as 'the Act'). We are informed that the Tribunal itself had remanded a similar matter to the Assessing Officer. 3. In ITA No. 205 of 2014, the appellant contends that the following questions of law arise for consideration:- A. Whether the order passed by the Hon'ble Tribunal is perverse in nature as the Tribunal has passed the impugned order w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Appeals) upheld the order of the Assessing Officer rejecting the books of account but sustained the addition of Rs. 10,00,000/- on account of the rejection of books. The CIT (Appeals) held that the provisions of Section 68 were not applicable to sundry creditors. The CIT (Appeals) also held that the purchases from the three parties were genuine. The orders of the Assessing Officer in this regard were set-aside. The Assessee and the Revenue, therefore, filed appeals before the Income Tax Appellate Tribunal. The Tribunal dismissed the assessee's appeal and allowed the appeal filed by the Revenue. 7. The main issues before the authorities were whether the books had been rightly rejected and whether the addition has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s Maa Durga Trading Company were not found to be genuine. It is important to note that what was found not to be genuine were the purchases made by M/s Maa Durga Trading Company. It is difficult to ascertain which purchases were found not to be genuine. In other words, it is difficult to ascertain that all or only some of the purchases of M/s Maa Durga Trading Company were fake. It is also not clear whether the only stock lying with the vendors was purchased from M/s Maa Durga Trading Company or whether the vendors had also acquired stock from other sources as well. Even assuming that their purchases from M/s Maa Durga Trading Company were fake, it would not necessarily reflect adversely upon the sales by the vendors to the assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer by issuing summons under Section 131 of the Act to the vendors and also the enquiry made from the bank authorities establishes that the purchases were not genuine. The order does not indicate any reasons in support of this finding and in any event various aspects which have been dealt with by the CIT(Appeals) have not been taken into consideration while arriving at this finding. Further, the effect of the finding that the payments by the assessee to its vendors and of M/s Maa Durga Trading Company having withdrawn the same is not dealt with satisfactorily. Merely because M/s Maa Durga Trading Company withdrew the amount which was paid by the assessee to its vendors would not lead to the conclusion that the transactions betwe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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