N.K. INDUSTRIES LTD. Vs. DY.C.I.T.
LAWS(GJH)-2016-6-287
HIGH COURT OF GUJARAT
Decided on June 20,2016

N.K. Industries Ltd. Appellant
VERSUS
DY.C.I.T. Respondents

JUDGEMENT

K S JHAVERI,J. - (1.) Being aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' (hereinafter referred to as 'the Tribunal'), the assessee has preferred the present Tax Appeals assailing the following orders JUDGEMENT_287_LAWS(GJH)6_2016.jpg 1.1 Similarly, being aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' (hereinafter referred to as 'the Tribunal'), the revenue has preferred the present Tax Appeals assailing the following orders: JUDGEMENT_287_LAWS(GJH)6_20161.jpg
(2.) These matters were admitted by this Court for consideration of the following substantial question of law: Tax Appeal No. 240 of 2003: Whether on the facts and in the circumstances of the case, Income tax Appellate Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25% i.e. Rs. 73,23,322/ - of the total purchases amounting to RS. 2,92,93,288/ -? Tax Appeal No. 241 of 2003: (1) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was justified in confirming the addition of Rs.3,70,78,125/ - as gross profit on sales of Rs.37.08 crores made by the Assessing Officer despite the fact that the said sales had admittedly been recorded in the regular books during Financial Year 1997 -98 ? (2) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the Assessing Officer had rightly made additions in respect of purchases worth Rs.1,14,78,000/ - from M/s. Somnath Industries and Rs.51,67,228/ - from M/s.Krishna Marketing in assessment which has been framed u/s.158BC of the Act, despite the fact that in proceedings under Section 132 of the Act no material was found in relation to said two parties to warrant such additions ?? Tax Appeal No. 242 of 2003: Whether on the facts and in the circumstances of the case, Income -tax Appellate Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25% i.e. Rs. 3 crores of the total purchases amounting to Rs. 11.99 crores? Tax Appeal No. 260 of 2003: Whether on the facts and in the circumstances of the case, Income -tax Appellate Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25% i.e. Rs. 3 crores of the total purchases amounting to Rs. 11.99 crores? Tax Appeal No. 261 of 2003: Whether on the facts and in the circumstances of the case, Income tax Appellate Tribunal was justified in retaining the addition on account of alleged bogus purchases at 25% i.e. Rs. 73,23,322/ - of the total purchases amounting to Rs. 2,92,93,288/ -?
(3.) The assessee company also popularly known as N.K. Group of companies is involved in trading and speculation of castor seed and also engaged in export of castor oil and castor oil derivatives. During the course of search proceedings at the office premises of NKPL, blank signed cheque books and vouchers of number of concerns were found. Endorsed blank cheques of NKPL by these concerns were also found from the office premises of NKPL wherein the endorsement was on the back of the cheques. Blank bill books, letter heads and vouchers of these concerns were found and seized from the factory premises of NKPL. Purchases made from these concerns have been treated by the Assessing Officer as bogus purchases in view of elaborate reasons recorded in the assessment order. The entire deposits in the bank accounts of these parties were treated as assessee's income on protective basis. 3.1 On appeal before the Tribunal by the revenue, by impugned judgment and orders, Tribunal confirmed the findings of the CIT(A). The Tribunal also deted the addition shown for salt washing loss. Being aggrieved and dissatisfied with the impugned orders passed by the Tribunal, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. ;


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