- (1.) HEARD Dr. R.K. Srivastava, learned Counsel for the appellant and Mr. D.D. Chopra, learned Counsel appearing for the respondent.
(2.) DISPUTE relates to the assessment year 1988 -89. Feeling aggrieved with the addition of Rs. 2,36,939/ - in pursuance to the provisions contained in Sub -section (2) of Section Income Tax Act as well as addition of Rs. 15,030/ - under Section of the Income Tax Act, present appeal has been preferred under Section of the Act. The Income Tax Appellate Tribunal while allowing the appeal in part maintained the order of the assessing authority with regard to the amount in question.
(3.) WHILE admitting the appeal on 1.9.2004, this Court had not framed substantial question of law on its own keeping in view the mandate of Section of the Income Tax Act. However, substantial questions of law at Serial Nos. 1, 2, 3 and 4 have been taken into account while admitting the appeal. These questions are reproduced as under: 1. Whether the Income Tax authorities have jurisdiction or power under Section of the Income Tax Act, 1961 to reject the duly maintained and correct accounts merely for not keeping the Talpattis (weighment) in some cases as other requirements i.e. name and address of the persons, who had kept the potatoes were maintained and also in number of cases entire details as received to work -out the income of the assessee was duly kept? ii. Whether the appellate authority, after having not disputed the details of the entries in Talpatti regarding farmers, quantity of potatoes stored by them and freight etc. at the time of storage, could reject the case of the petitioner in the matter of weighment at the time of Nikasi of the bags/quantity of potatoes under storage and fasten the additional tax liability in respect of Rs. 2,36,939.00 by applying provisions of Section of the Income Tax Act, 1961? iii. Whether purchase of Ammonia, an essential ingredient to run the cold storage, having not been disputed or doubted, the same could have been rejected on the ground that payment in respect of only two transactions of purchase of Ammonia of Rs. 6530/ - and Rs. 8500/ - being above Rs. 2500/ -, ought to have been made through cheque or bank draft? iv. Whether purchase of certain item in the open market in transaction of business is necessary to be made through bank draft or cheque notwithstanding the fact that the same is either not feasible or beyond control of an assessee?;