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TMI Blog2003 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... RIAN JOSEPH. JUDGMENT The Income-tax Appellate Tribunal, Cochin Bench, has referred the following question of law for decision by this court: "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in sustaining the additions on the ground that there were bogus purchases against the names of three identifiable persons and also against a number of unidentifiable parties?" The brief facts necessary for decision of this question are as follows. The applicant is a partnership firm carrying on the business of procuring copra for a sister concern by name M. M. Nagalinga Nadar Sons, Quilon, who had their office in the same premises. While purchasing copra the assessee was deducting an estimated quantity as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the entire quantity purchased by the assessee had been transferred to the sister concern without even making payment and so there was no justification for any addition. However, in the appeal filed by the Revenue the Tribunal took the view that the Commissioner of Income-tax (Appeals) was not correct in deleting the addition merely because there was no driage claimed by the assessee. The Tribunal noted that the addition made by the Assessing Officer was not on the ground that there was excess claim of driage in the copra account. The Tribunal also noticed that even though the Assessing Officer had started with the quantification of the driage, the addition of Rs. 8,58,016 had been made by way of disallowance of bogus purchases only. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lying copra to the assessee, there would have been no difficulty in getting the transaction proved through cross-examination. But instead of making any attempt to prove that there were genuine purchases, the assessee's response was 'we are not bothered as to whether they had accounted for the sales or not'." The Tribunal has also noted the facts brought out in the assessment order as follows: "8. The facts brought out in the assessment order are- (1) The purchase of 139.47 quintals claimed by the assessee is not supported by independent evidence. (2) The assessee has not produced the khatta register and other primary books before the Assessing Officer. (3) The parties in whose names the purchases are claimed have denied the sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax (Appeals), the Assessing Officer had furnished another computation showing the amount to be disallowed at Rs. 4,90,645 in the place of Rs. 6,50,434. That computation has not been shown to us. In the circumstances of the case, we direct the Assessing Officer to restrict the disallowance to the actual amount claimed as the cost of purchase of 437 quintals of copra treated as bogus purchase." We are of the view that the aforesaid findings with regard to the quantity of 584 quintals of copra treated as bogus purchases are findings of fact entered purely on appreciation of the facts and circumstances of the case. We do not find any question of law arising from the said order of the Tribunal. We accordingly decline to answe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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