TMI Blog2008 (3) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt was delivered by R. S. Mohite J. - 1. The common questions of law as raised in paragraph 5 of all these appeals are the same and are as under :- (i) Whether on the facts and in the circumstances of the case and in law, the ld. Income-tax Appellate 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Income-tax Appellate Tribunal was legally justified holding that the facts of the assessee's case in assessment years 1986-87 were different from the facts in the case of M/s. Metro Shoes Ltd. in assessment years 1995-96 and were actually comparable to the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame M/s. Jaihind Sahakari Charmoutpadak Sangh Ltd (JHSCL), M/s. Jai Bharat Leather Producers Co-operative Society Ltd. (JBLPCSL) and Vishal Leather Industrial Co-operative Society (VLICS). On enquiries made into the affairs of these societies, the Income-tax authorities 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 That the loans so obtained were withdrawn by bearer cheques and were utilised for financing their purchases by Metro Shoes and M/s. Metro Shoes Ltd., the two main concerns of the 'Metro group'.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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The reply as filed in response to the show cause notice was rejected and the purchase cost was reduced by 60% from the cost price as recorded in the books of account of the assessees. The first assessment made by the Assessing Officer was for the assessment years 1995-96 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essees from 48% to 43.57% The two appeals filed by the firm and company belonging to the Metro group were therefore, allowed to the aforesaid extent and the 2 cross appeals filed by revenue were dismissed. (g) The record indicates that aggrieved by this decision of Income-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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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