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2015 (9) TMI 1185 - BOMBAY HIGH COURT

2015 (9) TMI 1185 - BOMBAY HIGH COURT - [2016] 386 ITR 639 - Estimation of income - genuineness of fall in price / loss - AO relied upon various surrounding circumstances such as sales made by a sister concern of the Respondent-Assessee Canon Steels Pvt. Ltd. to conclude that there was no crash in the market, warranting a loss - Breach of the natural justice - Whether the Tribunal after upholding the contention of the Appellant that the orders of the Assessing Officer & Commissioner of Income Ta .....

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ing in breach of natural justice. However, after holding the above, the impugned order proceeds to consider the other evidence on record to examine whether or not the disallowance of loss by the lower authority could be sustained even after ignoring the statements of persons who were not offered for the cross examination. The impugned order found that both the Assessing Officer and the CIT(A) had on the basis of other evidences and surrounding circumstances as set out above, concluded that loss .....

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ircumstances, it concluded that the loss was not genuine. - The finding of fact recorded by the impugned order is not shown to be perverse and/or arbitrary. It is a possible view in the context of facts arising in this case for consideration. Thus, the question as proposed for our consideration does not give rise to any substantial question of law. Accordingly, we see no reason to entertain the present Appeal. - Income Tax Appeal No. 1246 of 2011 - Dated:- 31-8-2015 - M. S. Sanklecha And A. .....

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which has been raised is as under: "Whether the Tribunal after upholding the contention of the Appellant that the orders of the Assessing Officer & Commissioner of Income Tax (Appeals)[CIT(A)] were passed in breach of the natural justice in the absence of the cross examination, is correct in sustaining the orders on the basis of other circumstances?" 3. The Appellant is a partnership firm, engaged in trading in items like raw wool, synthetic waste and acrylic fiber. For the subjec .....

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xplanation was sought for by the Assessing Officer. The RespondentAssessee explained that price of raw wool crashed, which led to the sale at a loss. However, enquiry from individual buyers was not possible as the Assessing Officer found that most of the sales by the RespondentAssessee was in cash for consideration of less than ₹ 10,000/-. In the result, the Assessing Officer felt it necessary to issue a commission to the Commissionerate at Ludhiana to examine the persons who had admittedl .....

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re not traceable. The explanation offered by the Respondent-Assessee that raw wool was purchased at prefixed prices from M/s. Suvidha Wools Mills, was found not believable. In these circumstances, he relied upon various surrounding circumstances such as sales made by a sister concern of the Respondent-Assessee Canon Steels Pvt. Ltd. to conclude that there was no crash in the market, warranting a loss. The Assessing Officer also noted the fact that it was the Assessee's case that it was in th .....

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as not genuine. 6. In appeal, the CIT(A) confirmed the order of the Assessing Officer after having recorded the fact that the persons who gave statements before the Commissionerate at Ludhiana could not be produced for cross examination. However, on examination of other circumstances, the CIT(A) concluded against the Respondent-Assessee as under: (a) No agreement either written or oral with M/s. Suvidha Woolen Mills to supply raw wool at a future date at an agreed rate; (b) Assessee was booking .....

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