1996 (9) TMI 37

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..... s a reference under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee, and the following question of law has been referred by the Tribunal for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal having confirmed the addition of Rs. 7,51,740 agreeing to the finding of the Assessing Officer that no iron scrap was purchased .....

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..... chased from Sagar Enterprises, Jabalpur, and the payments made to the Jabalpur party was actually received by the assessee itself. Accordingly, the Assessing Officer made an addition of Rs. 7,51,740 to the disclosed income of the assessee towards investment in purchase of iron scrap from undisclosed sources. The Assessing Officer also disallowed the transportation charges of Rs. 42,650 paid to the .....

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..... at Jabalpur and also claimed transportation charges, but on verification, it is found that no such purchase was made from the Jabalpur party. It appears that the whole transaction was sham. Therefore, the said addition of Rs. 7,51,749 and Rs. 42,650 has been made in the income of the assessee. We are of the opinion that the Tribunal has rightly approached the matter and that there is no question .....

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