- (1.) This appeal under Section 260A of the Income-tax Act, 1961 is at the instance of an assessee and is directed against an order dated 13th November, 2003, passed by the Income-tax Appellate Tribunal, "B" Bench, Kolkata in ITA No.1507/Kol/2001 for the assessment year 1998-99.
(2.) The facts leading to the filing of the present appeal may be summed up thus: a) The appellant filed its return of income for the assessment year 1998-99 with the statement of accounts and in the said return, the assessee disclosed a loss of Rs.300/-. b) After filing of the return, the Assessing Officer processed the return of income under Section 143(1)(a) on the total income of Rs.23,129/- raising a demand of Rs.10,850/-. Notice under Sections 143(2) and 142(1) was thereafter served upon the appellant and in response to the said notice, the authorized representative appeared before the Assessing Officer. The appellant alleged that it had made payment of Rs.1,00,737/- to M/s. Imprint's-N-Trade, a sum of Rs.50,675/- to M/s. Soma Enterprises and a further sum of Rs. 3,12,302/- to M/s. Selvas Photographics. c) So far as the payments made to M/s. Selvas Photographics are concerned, it appears that those were paid by account payee cheques for the purpose of transaction of business conducted by the appellant. d) As regards payments made to M/s. Soma Enterprises and M/s. Imprint's- N-Trade those were, however, made by cash. e) The Assessing Officer gave opportunity to the appellant to produce those three parties for verification of the claim, but it appears that none of them appeared before the Assessing Officer. f) In such circumstances, the Assessing Officer was of the view that those were fictitious claim.
(3.) Being dissatisfied, the appellant preferred an appeal before the Commissioner of Income-tax Appeal and the said Officer accepted the claim of the appellant regarding payment on those three accounts.;