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TMI Blog2009 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... its that the following questions of law would arise out of the common order and has advanced his argument with reference to the questions of law, which are extracted below, though several other questions of law have been formulated in the memorandum of grounds of appeals: "1. Whether the Appellate Tribunal is correct in law in concluding that the partial sustenance of the disallowance of the claim of the purchase of old bottles used in the business of the appellant even though there were no materials available on record to fortify the said partial disallowance? 2. Whether the Appellate Tribunal is correct in law in sustaining the action of the respondent in disallowing the interest on certain loans taken on leasi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose entries were not proved as genuine with relevant materials. The assessing officer has also disallowed a sum of Rs.14,82,288/- representing interest component on certain lease transactions, which was found by him as bogus. The claim of non-competing fee was also rejected. The first appeal filed by the assessee was disposed of on 15.12.2006, wherein the Commissioner (Appeals) after taking into consideration of the offer made by the Managing Director for a sum of Rs.74,50,000/- for taxation and also by approving the finding that there was a huge inflation of purchase expenditure and having found that the exact quantum could not be arrived at, disallowed 10 percent of the purchase expenditure by saying that would meet the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor of the company, who offered a sum of Rs.74,50,000/- for taxation. It is also found proved by the authorities below that a very huge purchase of old bottles has been made by the assessee through their employees. However, when questioned, the employees have categorically admitted before the authorities that they were forced to sign in the dotted lines and as such there is no proof for such huge purchase forthcoming from the assessee. The proof adduced has been rejected as stated above. The Commissioner of Income-tax (Appeals) has rejected the claim of wastage of 4.50 percent as in the higher side, however, found with the available material that it was not possible to quantify the purchase inflation of old bottles with accurate prec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As the Company would act only through the Directors of the Company, the non-competing fee paid in favour of the Company claimed as reduction has been rejected. The Tribunal has remitted back the matter to the authority below on the premise that the Commissioner of Income-tax (Appeals) has granted the relief on assumption that the Managing Director alone would compete with the assessee if at all and that assumption has been reached without having any material before him. In order to have a clear picture of the issue, the matter was remitted back back to the authorities to re-consider the issue with relevant materials. On the total analysis of the facts, we find that the assessee had miserably failed to make out a case for entertaining these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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