Case Law Details
PCIT Vs Dhananjay Mishra (Bombay High Court)
Assessing Officer has relied upon third party statement without supplying it to the assessee or considered the closing stock or considered the fact that payments were made through banking channels including by way of letters of credit. Since none of those points were discussed in the assessment order, the ITAT concluded, that the Assessing Officer having not disputed the used material or disputed the stock of the assessee, it did not find any illegality or infirmity in the order of CIT (Appeals). In our view also the assessment order could not have been passed by the Assessing Officer without granting an opportunity to respondent to defend his position or cross-examine the two persons on whose affidavits, the Assessing Officer had relied upon to conclude that respondent had made certain purchases from those persons identified as Hawala Traders. The Assessing Officer also should have investigated further or should have dealt with in his assessment order as to why he was not accepting the explanation of respondent that he had paid in excess of Rs.25,62,560/- through the Bank L.C. to one of the parties allegedly doing business of issuing bogus bills.
HC held that , the Tribunal has not committed any perversity or applied incorrect principles to the given facts and when the facts and circumstances are properly analysed and correct test is applied to decide the issue at hand, then, we do not think that question as pressed raises any substantial question of law.
FULL TEXT OF THE JUDGMENT/ORDER of DELHI HIGH COURT
1. This appeal is filed impugning an order dated 7th October 2016 passed by Income Tax Appellate Tribunal (ITAT) whereby, the ITAT confirmed the order passed by CIT (Appeals) dismissing the appeal of the revenue. Mr. Mohanty states he is not pressing question no.6.1 but is pressing only question no.6.2 in the appeal. We find that no question of law arises and the question as framed in the appeal is also a question of fact and cannot be called a question of law.
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