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TMI Blog2013 (10) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Sanjay Oilcake Industries v. CIT [2008 (3) TMI 323 - GUJARAT HIGH COURT] – Decided against the Revenue. - TAX APPEAL No. 63 of 2012 - - - Dated:- 23-10-2012 - MR. AKIL KURESHI AND MS. HARSHA DEVANI, JJ. FOR THE PETITIONER : MR MANAV A MEHTA ORDER (Per : HONOURABLE MR.JUSTICE AKIL KURESHI) The Revenue is in appeal against the judgment of the Income-tax Appellate Tribunal dated July 26, 2011, raising the following questions for our consideration : "(i) Whether the Income-tax Appellate Tribunal erred in law by not appreciating the fact that the assessee had not kept day-to-day stock register, in the absence of which production of finished goods received, the shortage arrived, goods sent for processing, goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 41,10,187. The issue was carried in appeal by the assessee before the Commissioner. The Commissioner rejected the appeal, upon which the assessee went in further appeal before the Tribunal. The Tribunal, substantially allowed the assessee's appeal. In so far as the question of bogus purchase is concerned, the Tribunal concurred with the Revenue's views that such purchases were made from bogus parties. The Tribunal noted that the Assessing Officer had issued notice to all parties from whom such purchases were allegedly made. Such notices were returned unserved by the postal authorities with the remark that the address was incomplete. The inspector deputed by the Income-tax Department also could not find any of the parties available a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties from whom such purchases were allegedly made were bogus is essentially a question of fact. The Tribunal having examined the evidence on record came to the conclusion that the assessee did purchase the cloth and sell the finished goods. In that view of the matter, as natural corollary, not the entire amount covered under such purchase, but the profit element embedded therein would be subject to tax. This was the view of this court in the case of Sanjay Oilcake Industries v. CIT [2009] 316 ITR 274 (Guj). Such decision is also followed by this court in a judgment dated August 16, 2011, in Tax Appeal No. 679 of 2010 in the case of CIT v. Kishor Amrutlal Patel. In the result, tax appeal is dismissed. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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