COMMISSIONER OF INCOME TAX AND THE JOINT COMMISSIONER OF INCOME TAX (ASSESSMENT) Vs. RANGANATHA ENTERPRISES

JUDGEMENT

(1.) The instant appeal is by the revenue questioning the legality and correctness of the impugned order dated 7.2.2005 passed by the income Tax appellate Tribunal in ITA No. 109/Bang/2002 and raising following substantial questions of law:

(2.) The briaf facts leading to filing of this appeal are as follows:

(3.) During the course of canvassing his arguments, Sri. seshachala, learned Counsel for the revenue at the outset submitted that the Tribunal has failed to consider the finding of fact recorded by the Assessing Officer as well as the Assistant Commissioner of Commercial Taxes. without looking into the observations made in the Order at para-7 passed by the Assistant Commissioner of Commercial Taxes, the Tribunal has proceeded to allow the appeal following the judgment in the case of Shri. Shadilal Sugar and General Mills , 168 ITR 705. He further submits that the Tribunal has erred in placing reliance on the above cited lodgment, as the same has been overruled by the Apex Court in the case of K.P. Madhusudhanan v. Commissioner of Income Tax,251 ITR 99. Therefore, he submits that order impugned cannot be sustained and is liable to be set aside.