TMI Blog1973 (3) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... filed only one appeal. The two appeals came to be filed because before the Tribunal there was an appeal and cross-objection. But both the appeals related to the same matter and they arise out of the same order. The only question arising for decision in this case is whether the Tribunal was justified in refusing to refer a question of law arising from its order. We shall presently set out the relevant facts. Aggrieved by the decision of the Tribunal, the Commissioner of Income-tax, Andhra Pradesh, moved the Tribunal under section 256(1) of the Income-tax Act, 1961, to submit to the High Court the following question of law : " Whether, on the facts and in the circumstances of the case, and having held that the assessee was in the hab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 . Kishen Saheb 4,600.40 2. Moula Saheb 2,307.80 3. Giridhar Sahu 5,676.70 4. Magatha Naike 4,456.12 5. Dinkar Sahu 5,855.88 6. Apparabatla Gangiah 2,600.00 25,496.90 The alleged credit purchases were not paid for during the year, but the amounts were carried forward to the subsequent years. The Income-tax Officer considered that it was inconceivable that those persons with very small means of income and living in far off places would sell their goods on credit to the assessee and keep quiet without making any attempt to draw the sale proceeds from the assessee. They were described by the Income-tax Officer as street hawkers. The Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the appellant's book and as some of them had stated that these activities were being carried on in co-partnership with certain others, the alleged purchases were credit purchases and not cash purchases as originally suspected by the Income-tax Officer. He went a step further by looking into the availability of cash ; it appears that the assessee had sufficient cash on the various dates of purchases. Therefore, he came to the conclusion that there was no warrant to hold that the purchases were described as credit purchases with any sinister motive attached to them. With reference to the cash credits in the diverse accounts found by the Income-tax Officer, the Appellate Assistant Commissioner agreed that the genuineness of the cash cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their demands of the amounts due to them, though they have categorically admitted in their respective statements that their incomes were supplemented by the earnings of their women folk. The Income-tax Officer has aptly illustrated the modus operandi of the assessee by making a reference to the account of Mahalaxmi Industries. The account books of the assessee reveal that there was a credit purchase for Rs. 351.75 from the said concern, while it was actually a cash purchase. On being confronted, the assessee did not feel shy of recoiling from his earlier statement and making an admission that it was only a cash purchase. The Appellate Assistant Commissioner laboured under the misconception of the principle of judging the exigency of descri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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