TMI Blog2001 (4) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 (for short "the Act of 1961"), by holding that the assessee has paid excessive purchase price to the sellers on purchases made by it from its sister concerns or group of concerns than on the purchases made by the assessee from the primary producers, i.e., Hindustan Aluminium Co. Ltd., etc., where the assessee-directors were not having substantial interest. The total excess payment over the fair market value was estimated to be Rs.7,54,584 on account of the purchases made by the assessee from Salbo Conductors Pvt. Ltd., Salbo Engineering Pvt. Ltd. and Bali Cables Pvt. Ltd. The additions made on that ground were challenged before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) had accepted the explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were also given. Thus finding the sale rate of the primary producers will naturally be on a lower consideration as compared to other persons, no adverse inference can be drawn against the assessee for having paid excessive price to the aforesaid concerns by comparing the sale rate of the primary producers. However, finding that in two purchases of steel wire effected by the appellant in August, 1988, and November, 1988, where the purchase rate was different from higher vis a vis the market rate and the size of the wire was practically the same, the difference so paid was subjected to the provisions of section 40A(2) and the excess amount of expenses estimated at Rs.13,330 were sustained as additions under section 40A(2). These findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been no challenge to the finding that looking to the requirement of the Electricity Board to which the end-product of the assessee was to be supplied and there was short supply of material from the primary producers which it allowed to the producing of material from the open market to fulfil the contractual obligations. The Tribunal agreed with the reasoning given by the Commissioner of Income-tax (Appeals). In the aforesaid facts and circumstances of the case, we are of the opinion that the finding recorded by the Tribunal that no case for excessive payment has been made out by the Revenue on appreciation of facts is essentially question of fact and no substantial question of law arises for consideration in this appeal. As a result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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