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TMI Blog2013 (3) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing of the appeal before ITAT an application for bringing additional evidence on record was filed even then the said application was considered and was rejected by reasoned order. Therefore, no case is made out for interfering with the orders passed by the authorities below. All the authorities have considered the evidence on record. The appellant on the other hand is not being in a position to establish or to give satisfactory reason in respect of unaccounted iron ore to the tune of 18869 M. T - against assessee. - Tax Appeal No.59 of 2012 - - - Dated:- 25-2-2013 - V M Kanade and F M Reis, JJ For theAppellants: Mr G Sarangam, Sr. Adv. Mr P Dinesh Mr S M Singbal, Advs. For the Respondent: Ms A Dessai, Adv. JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... content from the Hospet region and used to blend it with low grade iron ore for the purpose of export and out of the total purchase of 45,848 M. T. from outside parties. The assessee purchased 18869 M. T. in the 2nd half of March, 2005 from certain suppliers names of whose are mentioned in the assessing order. After profit and loss account for the year 2004-05 was verified it transpired that the assessee had not included 18869 M. T. of iron ore in the closing stock. Explanation was asked from the General Manager. He informed that some quantity of ore was taken from M/s Orient (Goa) Pvt Ltd (hereinafter referred to as M/s. OGPL for short) as loan cargo and thereafter returned to M/s. OGPL. According to him these ore have been included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re from M/s. OGPL in order to meet its export requirements for shipment in the month of March, 2005 and said quantities were returned to M/s. OGPL on purchase of order at Hospet in the last weeks of March, 2005 and since the transaction was settled in the same year it was not necessary to raise debit note or other document. In support of his claim statement obtained from M/s. OGPL of their hospet ore which showed that M/s. OGPL had sufficient stock when transfer to the assessee company took place. The assessing officer held that M/s. OGPL is sister concern of assessing company and in the absence of any other supporting evidence on the basis of book entries could not be relied upon. The assessing officer observed that these entries at the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his claim that iron ore belong to M/s. OGPL has been borrowed by the appellant company. The Commissioner of Income Tax has observed in its order as under:- It is quite unbelievable that when substantial quantity of 18869 MT of iron ore belongs to M/s. OGPL, there was no reason why the said material was lying at the railway plot belonging to the appellant company and not at the premises of M/s. OGPL. It may be mentioned that the appellant purchases high grade iron ore from Hospet/Bellery region and mix the same with low grade iron ore in Goa and make them into saleable grade and thereafter, export them. It has been widely reported in press that huge quantity of high grade ore has been illegally mined in Karnataka over the last sever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that the relevant material was available with the assessing officer and he ought to have perused the said material on record. He submitted that assessing officer has observed that the entries in the books of account could be held to be supportive evidence in support of primary material and when other relevant documents and account will be produced. In view of this finding the application for bringing additional evidence on record ought to have been allowed. It was contended that Income Tax Appellate Tribunal and lower authority had given incorrect finding. Learned Senior Counsel has taken us to the observation made by Income Tax Appellate Tribunal and the assessing officer. 6. In our view no substantial question of law will arise in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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