9911796707
TMI Blog2013 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... a seller cannot sell goods to a purchaser on credit. The CIT(Appeals) and also the Tribunal accepted that the goods were purchased on credit and after it was sold the bank drafts were got prepared and there is no investment made by the assessee so as to warrant invoking the provisions of Section 69 - in favour of assessee. - Income Tax Appeal No. - 148 of 2001 - - - Dated:- 8-1-2013 - R.K. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 by the Assessing Officer on account of unexplained investment made in the purchase of bank drafts ? " Briefly stated, the facts giving rise to the present appeal are as follows: The appeal relates to the Assessment Years 1986-87. The respondent-assessee filed its return of income on 14.7.1986. The Assessing Officer came into possession of information regarding purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal evidence was admitted by the Commissioner of Income Tax (Appeals) after giving an opportunity to the Revenue to file objection. Before the Commissioner of Income Tax (Appeals) it was submitted that the drafts were got prepared after selling the goods which were purchased on credit and therefore, there is no question of investment made by the assessee while getting the bank draft prepared from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mti No. 5, Kanpur. The submission is wholly misconceived. It is common practice in the trade to procure goods on credit which is dependant on creditworthiness of the purchaser . We cannot lay down a hard and fast rule that a seller cannot sell goods to a purchaser on credit. The CIT(Appeals) and also the Tribunal accepted that the goods were purchased on credit and after it was sold the bank dra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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