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TMI Blog2008 (3) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was legally justified in relying upon its decision dated 19/12/2001 in I.T.A. No.1776, 1753 to 1759, 4957, 2543, 3101 to 3107 & 3645/MUM/99 in the case of M/s. Metro Shoes Ltd. in assessment years 1987-88 to 1994-95 & 1996-97 without appreciating the fact that the said decision of the ld. Income-tax Appellate Tribunal has not been accepted and further appeal against the same u/s.260A of the Income-tax Act, 1961 is being filed before the Hon'ble High Court? (ii) Whether on the facts and circumstances of the case and in law, the ld. Income-tax Appellate Tribunal was legally justified in holding that the statements recorded initially is not enough evidence for making addition, ignoring its own decision in the case of M/s. Parma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts in the case of M/s.Dawood & co., whereas the assessee had itself admitted before the ld. Commissioner of Income-tax (Appeals) that the facts in it's case were similar to assessment years 1995-96 in the case of M/s. Metro Shoes Ltd.? (vii) Whether on the facts and in the circumstances of the case and in law, the ld. Income-tax Appellate Tribunal was legally justified in directing the Assessing Officer to adopt the gross profit @ 25% in respect of retail sales, whereas, there was inflation of 60% in the cost of purchases show in the books of the assessee ? (viii) Whether on the facts and circumstances of the case and in law, the ld. Income-tax Appellate Tribunal was legally justified in holding that consideration of non-payment of sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities concluded that cheap loans were obtained in the names of fictitious members from various financial institutions and other Govt. agencies at normal rate of interest. That the loans so obtained were withdrawn by bearer cheques and were utilised for financing their purchases by Metro Shoes and M/s. Metro Shoes Ltd., the two main concerns of the 'Metro group'. That the co-operative societies were also used by over invoicing the purchases made by these two concerns and for this, the societies were charging a commission at 2% to 3% and the balance was being refunded in cash to Mr. Rafique Tejani who was one of the partners of Metro shoes. (b) Another aspect which came to notice of the Income-tax department was the purchases from the co-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 95-96 and on the aforesaid basis, amount of Rs.2,36,20,278 was added to the income of the M/s. Metro Shoes Limited and amount of Rs.2,75,26,480 was added to the income of M/s. Metro Shoes. (e) Aggrieved by these additions the asessees filed an appeal before the Commissioner of Income-tax (Appeals) and these appeals were decided by the Commissioner of Income-tax (Appeals) by his order dated 18.1.1999. By his order the Commissioner of Income-tax (Appeals) came to the conclusion that there was no evidence to indicate that the inflation in the purchase price by the Metro group from the co-operative societies was adopted at the uniform rates of 60%. He discussed the statements of various witnesses and concluded that there were various contradic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Appellate Tribunal, the Income-tax department filed Income Tax Appeal Nos.486/2002 and 487/2002. The record indicates that these appeals however, came to be dismissed as long back as on 7.11.2000 for non removal of office objections and for more than 7 years no attempt has been made to restore these appeals. (h) After the assessment of the Metro group for the assessment years 1995-96, the Income-tax department reopened the assessments of M/s. Metro Shoes Ltd., and M/s. Metro Shoes and an partner Rafique Malik for a block period from 1987 to 1997. These assessments were also carried upto the stage of Income-tax Appellate Tribunal and Income-tax Appellate Tribunal relying upon its earlier decision passed for the assessment years 1995 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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