Vaishnavi Agro Vs ITO (Jharkhand High Court)
The appeal was filed before the Jharkhand High Court under Section 260-A of the Income Tax Act, 1961 challenging three orders: the assessment order dated 29.12.2006 passed by the Income Tax Officer, Ward-III(I), Deoghar; the appellate order dated 14.03.2013 passed by the Commissioner of Income Tax (Appeals), Dhanbad; and the order dated 04.11.2015 passed by the Income Tax Appellate Tribunal, Ranchi Circuit Bench. These authorities had added and confirmed an addition of ₹11,04,165 to the appellant’s returned income.
Counsel for the appellant argued that the impugned orders were non-speaking and ignored both oral and written submissions made on behalf of the appellant. It was contended that several material evidences, including copies of ledger accounts, bills of customers, evidence of payments through banking channels, and receipts of commission agents through whom goods were transported, were not considered by the authorities. The appellant further submitted that the finding of bogus sales was based on surmises and conjecture without primary or corroborative evidence.
The appellant also argued that the Tribunal relied solely on replies received from two customers stating that they had not entered into any transactions with the appellant. According to the appellant, these responses were accepted without granting an opportunity to cross-examine the concerned parties. On this basis, the appellant proposed several substantial questions of law, including whether the Tribunal was justified in confirming the addition without considering the material evidence and whether reliance on the replies of customers without cross-examination was legally valid.
