TMI Blog2003 (4) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... especially when admitted by the assessee that no books of account and other record whatsoever was maintained in respect of kiln owned under the name and style of Shiv Shakti Gram Udyog Larth? - we hold that the questions framed by the Revenue cannot be treated as substantial questions of law within the meaning of section 260A - - - - - Dated:- 7-4-2003 - Judge(s) : G. S. SINGHVI., S. S. GREWAL. JUDGMENT The judgment of the court was delivered by G.S. SINGHVI J.-The Revenue has filed this appeal under section 260A of the Income-tax Act, 1961 (for short, "the Act"), for determination of what it has described as substantial questions of law. For the sake of reference, the questions framed by the Revenue are reproduced below: "1. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath Ram Naresh Kumar. He owned two, brick kilns in village Sagaran, Tehsil Dasuya, District Hoshiarpur. For the assessment year 1991-92, the assessee filed a return on July 23, 1992, declaring an income of Rs. 86,790. The Assessing Officer completed the assessment under section 143(3) of the Act at a total income of Rs. 2,52,472 plus agricultural income amounting to Rs. 1,23,220. Vide order dated August 10, 1992, he made addition of Rs. 1,44,429. Subsequently, he initiated proceedings under section 148 read with section 147 of the Act on the ground that the assessee had not accounted for coal measuring 315.970 m.t. valued at Rs. 4,98,342 which it had purchased in the name of Tirath Ram Naresh Kumar from Jeet Singh, proprietor of Modem Coal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of Tirath Ram Naresh Kumar and the Tribunal committed a serious illegality by refusing to rely on his statement. Dr. Sharda pointed out that the assessee had not challenged the genuineness of the signatures appearing on the sale bills produced by Jeet Singh and the Tribunal committed a serious error-by discarding the same. He then argued that non-payment of the price by the assessee cannot be made a ground for doubting the correctness of the additions made by the Assessing Officer. We have given serious thought to the arguments of learned counsel and have carefully gone through the orders passed by the Assessing Officer, the Commissioner of Income-tax, (Appeals) and the Tribunal. In our opinion, none of the questions framed by the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns are reflected in the books of Modem Coal Co. or not as it is for the Assessing Officer of Modem Coal Co. to take action against Modem Coal Co., if they made sales out of books of account. Further, in this case the sales were actually reflected in the books of account of Modern Coal Co., which is clear from the fact that it was Sh. V.K. Nagpal, Income-tax Officer, Ward-2, Hoshiarpur, assessing Modem Coal Co., who had informed: (vide his letter No. 260 dated May 21, 1993), the Assessing Officer about these sales transactions on the basis of information available in the assessment record of Modern Coal Co. These bills were also supplied by the Assessing Officer of Modem Coal Co. to the Assessing Officer of the assessee. In these circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991-92 were furnished before the sales tax authorities which were accepted as correct. (4) It was unusual for Jeet Singh, proprietor of Modem Coal Company, to have supplied 315.970 m.t. coal without receiving any payment. Not only this, even after issuance of notice by the Assessing Officer under section 131, and during the pendency of the appeals before the Commissioner of Income tax (Appeals) and the Tribunal, he did not demand payment in lieu of the coal allegedly supplied to Tirath Ram Naresh Kumar." The Tribunal rejected the theory of the presumed manufacture of 15,80,000 bricks out of the alleged coal purchased from Modem Coal Company by recording the following reasons: "On a perusal of the consumption of coal, bricks manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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