9911796707
TMI Blog2019 (2) TMI 1274X X X X Extracts X X X X X X X X Extracts X X X X ..... these findings, the Tribunal rightly confirmed the order passed by the CIT(A). Since the assessee has engaged in fraudulent activity by making a bogus claim of depreciation. The assessee's intention is tainted with malafide and it attempted to create evidence which was self serving as related parties had uttered the truth. It defies logic as to how the cargo of 67,700 kgs could have been transported in two lorries. The transporter who is said to have been transported only SGCI rolls has stated that he never transported any rolls but transported only scrap. Therefore, the assessee is not entitled for any relief. As already held that the assessee is guilty of fraud and has perpetuated fraud todefraud the revenue. The assessee having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961? 2)Whether the reopening is merely on challenge ofopinion and the Assessing Officer has no jurisdiction underSection147 to reopen the assessment? Disallowance of Depreciation: 3)Whether on the facts and in the circumstances ofthe case, the Income Tax Appellate Tribunal was right inlaw in confirming the disallowance of depreciation onSpecial Grade Cast Iron (SGCI) Rolls? Substantial Question of Law in T.C(A).No.892 of 2018 1)Whether on the facts and in the circumstances ofthe case, Order imposing penalty is liable to be set aside,when the Assessing Officer has not clearly indicated in thenotice issued u/s.271(1)(c) about concealment ofparticulars of income or there furnishing of inaccurateparticulars of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total .. 47,500 kgs Similarly, the weight of the Rolls allegedly sent by LorryNo.MH 04/5194 is as under: 485 MM x L 1300 .. 2500 kg x 13 = 32,500 kgs 485 MM x L 1200 .. 2400 kg x 13 = 31,200 kgs Total 67,700 kgs This itself would go to show that the consignments werenever undertaken. Suffice it to say that during enquiry bythe Department, the said Transporter (Noble Roadlines)denied having transported any Rolls and stated that he hastransported only Scraps to Bellary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumentary evidence, it cannotbe termed as a sham or a device. When once the managingdirector admits in his affidavit that there was no purchaseof materials/machinery, there was no lease of machineryand, therefore, the amounts paid is not lease of machineryand, therefore, the amounts paid is not lease rentals, wefail to understand what more evidence was required toestablish that the case of lease rentals pleaded by theassessee is a sham transaction or unreal transaction. Therefore, the Tribunal without any justification erred insetting aside the concurrent findings recorded by the twocourts below, which is based on legal evidence. However,after holding that the assessee is not entitled to a claim ofdepreciation on the lease rentals it h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umar, learned counsel appearing for the appellantsubmitted that atleast the peak of the financial transaction should be takeninto consideration and the assessee should be entitled to whatever relief underthe Act in respect of such transaction. 9.We outrightly reject the said submission since the assessee hasengaged in fraudulent activity by making a bogus claim of depreciation. Theassessee's intention is tainted with malafide and it attempted to createevidence which was self serving as related parties had uttered the truth. Itdefies logic as to how the cargo of 67 , 700 kgs could have been transported intwo lorries. The transporter who is said to have been transported only SGCIrolls has stated that he never transported any rolls but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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