9911796707
TMI Blog2011 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ent appeal may be summed up thus: (a) The appellant filed its return of income for the assessment year 1998-99 with the statement of accounts and in the said return, the assessee disclosed a loss of Rs. 300/-. (b) After filing of the return, the Assessing Officer processed the return of income under Section 143(1)(a) on the total income of Rs. 23,129/- raising a demand of Rs. 10,850/-. Notice under Sections 143(2) and 142(1) was thereafter served upon the appellant and in response to the said notice, the authorized representative appeared before the Assessing Officer. The appellant alleged that it had made payment of Rs. 1,00,737/- to M/s. Imprint's-N-Trade, a sum of Rs. 50,675/- to M/s. Soma Enterprises and a further sum of Rs. 3,12,302/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income-tax (Appeal) was not justified in reversing the order of the Assessing Officer in the facts and circumstances of the case. Being dissatisfied, the assessee has come up with the present appeal. It appears from record that a Division Bench of this Court, at the time of admission of the appeal, formulated the following substantial question of law: ("i) Whether on the facts and in the circumstances of the case the Learned Tribunal was right in law in holding that genuine purchase from M/s. Selvas Photographics, M/s. Soma Enterprises and M/s.Imprint's-N-Trade were bogus when on the contrary the relevant documents and/or evidence in support of the said transactions and the existence of the parties were made available before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as regards the payments made to M/s. Selvas Photographics are concerned amounting to Rs. 3,12,302/-, we find that those have been made by account payee cheques and those have been encashed through the bankers of M/s. Selvas Photographics. It appears that according to the appellant, at the time of assessment, the appellant had no business transaction with M/s. Selvas Photographics and consequently, the said party did not co-operate with the Assessing Officer. However, the transaction having taken place through account payee cheques, we are unable to accept the contention of Mr. Agarwal, the learned advocate appearing for the Revenue that the transaction was a nonexistent one. If an assessee took care to purchase materials for his business b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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