TMI Blog2006 (1) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ame material under different invoices which could be reflected in the closing stock. Tribunal has by way of illustration analysed the account of one of the items, appearing as annexure 6 in the paper book filed before the Tribunal and come to the irresistible conclusion that the quantity remaining in the closing stock is only out of the purchases effected by the assessee. It is in the light of the aforesaid findings that the Tribunal has held that no addition was warranted on account of alleged fictitious purchases - - - - - Dated:- 25-1-2006 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D.A. Mehta J.-The Income-tax Appellate Tribunal, Ahmedabad Bench, "C", has referred the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef for the balance amount. Against the order of the Commissioner (Appeals), the Revenue preferred an appeal challenging the relief granted by the Commissioner (Appeals), and the assessee preferred appeal challenging the partial confirmation of the addition. The Tribunal after hearing both the appeals together passed a consolidated order on August 20,1987 whereunder the appeal of the Revenue was allowed and that of the assessee was dismissed on this count. The assessee thereupon preferred a miscellaneous application bearing No. 78/Ahd/1987 inviting attention of the Tribunal to certain errors committed by the Tribunal. As the said miscellaneous application and the order thereon were not forming part of the paper book, learned counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. He also pressed into service the decision in the case of CIT v. Shervani Sugar Syndicate Ltd. [1993] 200 ITR 745 (All) and in the case of Salem Co-operative Central Bank Ltd. v. CIT [1993] 201 ITR 697 (SC) with special reference to the observation at pages 700 and 701 of the reports. In sum and substance, the submission was that the so-called order of rectification was not an order of rectification but was an order of review which was not permissible. When it was pointed out to counsel that the said order viz., order dated December 2, 1987, had attained finality and was not under challenge, he submitted that it was open to the applicant to agitate the said issue because the impugned order dated February 26, 1988 would be part and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annexure 6 in the paper book filed before the Tribunal and come to the irresistible conclusion that the quantity remaining in the closing stock is only out of the purchases effected by the assessee. It is in the light of the aforesaid findings that the Tribunal has held that no addition was warranted on account of alleged fictitious purchases. Similarly, in relation to the rate of purchases, the Tribunal has recorded 11 that in the absence of any material to show that the purchase price shown in the invoices was inflated it was not possible to sustain the addition on the said ground. The Tribunal has further recorded that there was no evidence to show that a part of the amount paid to the suppliers had come back to the assessee and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1987 in MA No. 78/Ahd/1987 filed by the assessee. The appeals were again heard on January 13, 1988." The record thus reveals that the Tribunal made three orders: the first order dated August 20, 1987, in the appeals filed by the assessee and the Revenue; the second order dated December 2, 1987, in miscellaneous application filed by the assessee; and the third order dated February 26, 1988, again in the Departmental appeal and the assessee's appeal. Therefore, if the Revenue was aggrieved it was by the order dated December 2, 1987, made in Misc. Application No. 78/Ahd/1987, because that was the order whereby the Tribunal had recalled its earlier order dated August 20, 1987. The effect is: the first order dated August 20,1987 did not survi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
