1998 (10) TMI 43

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..... ng questions relating to the assessment year 1987-88 under section 256(1) of the Income-tax Act, 1961 for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in upholding the levy of penalty under section 271(1)(c) of the Income-tax Act ? 2. Whether, there were materials for the Appellate Tribunal to come to the conclus .....

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..... ed that purchases purporting to have been made from Vijaya Metal Industries, Padivattom, Cochin, by the assessee aggregating to Rs. 1,61,459 were bogus. The explanation of the assessee was that purchases had been made through brokers and there was no direct link between the assessee and the suppliers and, therefore, the suppliers could not be identified. The Assessing Officer, however, held that .....

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..... ssessing Officer did not accept the contention of the assessee that the purchases were genuine. He found that there was a search operation on the assessee's premises on October 22, 1986, when it was discovered that the assessee had understated the stock to the extent of Rs. 3.5 lakhs. The Assessing Officer further found that in the successive revised returns the additional income was declared by t .....

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