JAWAHAR LAL GUPTA, J. - (1.) THE appellant is running a cinema house at Ludhiana. It filed its return for the asst. yr. 1983-84. It declared a taxable income of Rs. 1,10,556. The case was processed under S. 143(3) of the IT Act, 1961 vide order dt. 31st March, 1986. The AO made an addition of Rs. 1,76,000 on account of payment made to three distributors. Aggrieved by the order passed by the AO the assessee filed an appeal before the CIT(A). The appellate authority sustained the addition of Rs. 1,76,000. A further notice for enhancement of income for an amount of Rs. 3,16,890 was issued. The appellant showed cause. However, the plea as raised by the assessee was rejected. Thus, a total addition of Rs. 4,92,890 was made. The appellant approached the Tribunal. Its claim having been rejected, it has filed the present appeal under S. 260A of the IT Act, 1961.
(2.) MR . Mittal, learned counsel for the appellant contends that the additions made by the respondents cannot be sustained. A perusal of the order passed by the Tribunal shows the following categorical findings : 1. The petitioner claimed to have made payments to the film distributors and sought deductions on that account. It has been found that some of the payments purported to have been made to the three entities were in the form of bearer cheques which were encashed by some of the employees of the assessee. 2. The assessee disowned its books of accounts at various stages of the proceedings. Before the CIT(A) a revised statement of profit and loss was filed. It had no relationship with the books of accounts. 3. The assessee's plea that the amounts paid to the distributors represented their share has also been disbelieved.
(3.) THE payments made to the three parties had "found their way back to the assessee....";