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TMI Blog2019 (8) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... r the fact finding authorities to avoid taking subjective calls on these aspects, and remain confined to the findings on the basis of irrefutable evidences. Hon'ble Supreme Court has, in the case of Durga Prasad More [ 1971 (8) TMI 17 - SUPREME COURT] , observed that human minds may differ as to the reliability of a piece of evidence but in that sphere the decision of the final fact finding authority is made conclusive by law . This faith in the Tribunal by Hon'ble Courts above makes the job of the Tribunal even more onerous and demanding and, in my considered view, it does require the Tribunal to take a holistic view of the matter, in the light of surrounding circumstances, preponderance of probabilities and ground realities, rather than being swayed by the not so convincing, but apparently in order, documents and examining them, in a pedantic manner, with the blinkers on. In view of the above discussions and bearing in mind entirety of the case, we approve well reasoned order of the CIT(A) and decline to interfere in the matter.- Decided against assessee. - ITA No. 1401/Ahd/2015 - - - Dated:- 11-6-2019 - Pramod Kumar, VP And Ms. Madhumita Roy, JM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was also found that the assessee had nine transactions in respect of castor oil, that on all these occasions purchases were made from one Vishal Agrotech operating from the same premises from which the assessee is operating, that on all the occasions castor oil was sold to Aditya Marine Ltd on the same date in the same quantity but on a substantially lower rate, and that the transactions, therefore, seemed dubious. In respect of castor seed transactions also, the story was on the same pattern. All the three purchase transactions for castor seed were from Golden Tulip Hotels Apartments Pvt Ltd, all the three sale transactions were to RPK Agrotech Exports and Vishal Agrotech, and all these concerns were operating from the same premises from which the assessee was operating. When assessee was put to notice as to why loss incurred on these transactions not be disallowed, it was submitted that the transactions were genuine business transactions executed at arm s length and the parties enjoyed the address of the registered office for ease of work, and the same has been used for a short span but their different addresses were also furnished. Rejecting these submissions, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lative transactions as the assessee has not obtained the delivery of goods of alleged trading since the purchased item was sold on the same day in the same quantity and also that there is no transportation expenses claimed by the assesses. 4. The loss on these transactions was thus disallowed. Aggrieved, assessee carried the matter in appeal before the CIT(A) but without any success. Learned CIT(A), in a very elaborate and well reasoned order, confirmed the action of the Assessing Officer by observing as follows:- 2.2 I have carefully considered the rival contentions. After carefully going through detailed submissions filed by appellant and assessment order I am not inclined to agree with the contention of appellant. There are several important aspect of claim of appellant which fails the test of common logic. The most important fact is that dealing of appellant in such kind of activity which is not at all the regular business carried on by the appellant. As per available record the appellant is carrying on regular business of hiring of goods vehicle, rent from letting out of warehouse, income from weigh bridge. The appellant has reflected total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Quantity Value Quantity Value May 133.675 Mts 4232260 133.675 Mts 4250865 Gain= 18605 June 277.620 Mts 8967541 277.620 Mts 9033712 .Gain= 66171 Jan. 453.205 Mts 22116404 453.205 Mts 21368616 Loss= 747788 Feb. 878.546 Mts 45684392 878.546 Mts 28113472 Loss= 17570920 Total 1743.046 1743. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Oil 19/06/2010 60.0 72222 23/06/2010 120 71000 Castor Oil 23/06/2010 120.0 66613 The chart of castor oil and castor seeds shows trends of transactions by appellant in which major loss occurred is, in sale purchase of castor seeds and that to in the last transaction in Feb, 2011 amounting to ₹ 1,75,70,920/-. Ld A.O has further Observed that the purchase and sale has been executed on the same day, even the quantity of purchase and sale is different. It is purchased on higher rates and sold on same day in lower price. The logic behind given by appellant is the sale contracts entered into by appellant with the concerned parties few days before and its obligatory nature. Ld A.O has further pointed out that for castor oil all the purchases have been made from M/s. Vishal Agrotech and has been sold to M/s. Aditya Mariene Ltd. on the same. Even the quantity is also same, both of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beyond the normal logics of business. One more interesting fact is that it is beyond any logic that the so called buyer and seller both are situated in the same building same office but they instead of going for direct transition with each other chose to go through the appellant. This is. also illogical that a prudent business person will go for such type of transaction year after another, in which it has incurred huge losses and the area of business is also does not pertain to appellant company. Ld. A.O has also pointed out the rate difference of purchase and sale on 31.01.2011 castor seed purchase rate is @₹ 48,800 per MT. The sale rate on the same day is 47150/- per MT. Just after 10 days the rate of purchase is ₹ 47,150/-per M.T. and same day it was sold @ ₹ 32,000 /- per MT. As per the data available at http://www.ncdex.com/MarketData wrt to price of castor seeds in Feb. 2011 it is seen that there were no major variation of price of castor seed though the trend was upwardly but it was never @32000 per mt. Market Data Futures Pricese From the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder obligation to complete the earlier booked transactions. Further it has also failed to furnish evidence wrt to rate of purchase and sale of castor seed and castor oil as claimed by it. Secondly if all the entities with whom the appellant has entered into transaction for the above mentioned commodities, are different as submitted by appellant then the appellant has failed to prove that why these entities could not do transaction directly with each other being placed and working from same premise . Thirdly, the appellant has failed to furnish evidence of bearing of the transport expenses. since there has to be huge movement of goods through the containers, who has borne the transportation expenses is not clear and has not been explained by the appellant. Even the so called sale contract are also silent on this issue. There are some factual anomaly also wrt to name of parties booked for sale order for castor oil and castor seed as pointed out by ld. AO at page 8 para 8 of assessment order. The assessee had, as per invoices furnished, sold Castor Oil to M/s. Aditya Marine Ltd. but as per these 'Sale orders', the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 100 MTS * Well equipped with electricity and security round the clock Cargo Care Logistics We provide our customers with powerful logistics solutions involving people, technology and location, working together to provide integrated, full service supply chain management. We specialize in crafting efficient and cost effective logistics solutions customized to customer's specific requirements which allows you to focus on core competencies and develop a logistical edge over the competition through the use of our professional logistics services. We effectively bridge the gap between your vendors, your goods and your customers to provide you with a winning edge. At website of India MART About Rpk Agrotech Exports Private Limited WE ARE COMMITTED TO BE POSITIVE AGGRESSIVE IN OUR ATTITUDE TOWARDS QUALITY AND CUSTOMER SERVICE. WE WILL NOT ALLOW QUALITY TO TAKE SECOND PLACE BEHIND COST OR SCHEDULE AS THIS IS OUR BASIC STRATEGY FOR GROWTH. OUR CUSTOMERS DEMAND A HIGH QUALITY PRODUCT - IT IS OUR RESPONSIBILITY TO GIVE THEM WHAT THEY WANT BY SEEKING A BETTER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E INTEGRATED, FULL SERVICE SUPPLY CHAIN MANAGEMENT. WE SPECIALIZE IN CRAFTING EFFICIENT AND COST EFFECTIVE LOGISTICS SOLUTIONS CUSTOMIZED TO CUSTOMERS SPECIFIC REQUIREMENTS WHICH ALLOWS YOU TO FOCUS ON CORE COMPETENCIES AND DEVELOP A LOGISTICAL EDGE OVER THE COMPETITION THROUGH THE USE OF OUR PROFESSIONAL LOGISTICS SERVICES. WE EFFECTIVELY BRIDGE THE GAP BETWEEN YOUR VENDORS, YOUR GOODS AND YOUR CUSTOMERS TO PROVIDE YOU WITH A WINNING EDGE. * OVER THE YEARS HAVE GROWN BOTH IN TERMS OF FLEET OF TRUCKS AND THE ARGO HANDLED * HAS GOOD NETWORK WITHIN THE INDUSTRY AND IS AMONG THE MOST RELIABLE LOGISTIC OPERATOR FOR CARGO FROM MUNDRA/KANDLA * ALSO LOOKS INTO THE CLEARING AND FORARDING ACTIVITIES ON BEHALF OF ITS CUSTOMER * CUSTOMER VIEW CARGO CARE LOGISTIC AS ONE STOP SOLUTION FOR THEIR LOGISTIC NEEDS While going through the appellant submission it is seen that as claimed by it the parties with whom the appellant has made transaction of 'castor oil and castor seed are apperantly its related parties only. As per information available on internet the address of M/s. R.P.K. Agrotech Exports (P) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is 52874. 1ts E-mail address is [email protected] and its registered address is 601, ANURAG APARTMENT, B/H. VIDYANAGAR HIGH SCHOOL USMANPURA, AHMEDABAD - 380014, Gujarat INDIA. Current status of Golden-tulip Hotels And Apartments Private Limited is - Active. Further one of other party M/s. vishal agrotech is also situated at the same premise of M/s. RPK AGROTECH EXPORTS (P.) LTD. having address, at 351 SACOND FLOOR SECTOR 1/A. GANDHIDHAM KUTCH. as per scanned copy of bill furnished by appellant in its paperbook, The appellant has claimed to sold castor seeds at very low price @ ₹ 32,000/-after purchasing it @ ₹ 52,000/- from M/s. Golden Tulip Hotels Appts. P. Ltd : which is also situated at Plot No. 351 .SACOND FLOOR SECTOR 1/A, GANDHIDHAM KUTCH.3 Hence it is undoubtely clear that all these concerns with whom the appellant has claimed to have purchase and sale transaction and had huge loss in castor oil and seec dut to so called obligatory sale contract are sister concern. All are situated in same premises and even the director are also same as per information available on internet on pubic domain. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver 25 years with exposure and experience garnered at various ports in India. We have evolved after-going through various opus, shapes and avatars to come to this current form. Economical Logistic Management has become the need of the hour. With the advent of real-time communication viz. internet, and live quotes, etc., costs of trading physical produce has become transparent world over, diminishing. margins to insignificant levels. Industry in turn has realised the importance of associating with trusted total logistic solution providers, like us, who have exposure across the entire spectrum of business activity. AML consists of a core team of dedicated personnel who have extensive exposure across all ambits of a business enterprise, be it Sourcing, Processing, Manufacturing, Trading, Import, Export, Shipping, Chartering, Warehousing, Logistics, Vessel Agency, Custom Clearance, Marine Supply, etc. All this supported by in-house infrastructures, equipments and cargo handling machinery, has made us a company of choice. Quick access to outsourced, creditable technical advisors, taxation consultants, and legal counsel, as and when needed is an additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m inclined to agree with the contention of ld. AO. Therefore the disallowance of business loss of ₹ 1,68,35,722/- by ld. A.O is upheld. Accordingly, the appeal on this ground is dismissed. 5. The assessee is aggrieved and is in appeal before us. 6. We have heard the rival submissions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 7. All that the learned counsel has contended before us is that the mere fact that these entities were operating from the same premises cannot lead to the inference that these were sister concerns or the transactions were collusive. He invites our attention to the elaborate documentation in support of genuineness of the transaction and submits that this documentation cannot be ignored. The contentions raised before the authorities below were reiterated. 8. In our considered view, the arguments of the learned counsel are somewhat superficial and miss the fundamental genuineness aspect as has been well elaborated by learned CIT(A) in an erudite analysis. The variations in castor oil and castor seed prices are not suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court has observed, in the case of Durga Prasad More(supra), .......it is true that an apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real party who relies on a recital in a deed has to establish the truth of those recitals, otherwise it will be very easy to make selfserving statements in documents either executed or taken by a party and rely on those recitals. If all that an assessee who wants to evade tax is to have some recitals made in a document either executed by him or executed in his favour then the door will be left wide open to evade tax. A little probing was sufficient in the present case to show that the apparent was not the real. The taxing authorities were not required to put on blinkers while looking at the documents produced before them. They were entitled to look into the surrounding circumstances to find out the reality of the recitals made in those documents . As a final fact finding authority, this Tribunal cannot be superficial in its assessment of genuineness of a transaction, and this call is to be taken not only in the light of the face value of the documents sighted before the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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