COMMISSIONER OF INCOME TAX Vs. ENNOBLE CONSTRUCTION

JUDGEMENT

(1.) This appeal by the Revenue seeks to lay a challenge to the order dtd. 27/11/2015 made by the Income Tax Appellate Tribunal, 'B' Bench, Bangalore (hereinafter 'ITAT'), whereby the statutory appeal of the Assessee in ITA No.449/BANG/2014 having been favoured the addition made by the Assessment Officer on account of transport creditors, is set at naught, and to that extent the Assessee has been relieved of tax liability.

(2.) The Revenue in its Memorandum of Appeal filed under Sec. 260A of the Income Tax Act, 1961 (hereinafter '1961 Act') had framed the following question, as the substantial question of law:

(3.) After service of notice, the Assessee having entered appearance through its counsel opposed the appeal making submissions in justification of the impugned order and the reasons on which it has been constructed: that, the addition could not have been made by the AO without rejecting the books of accounts and sans making a best judgment assessment even in the failure to produce the material evidencing the business expenditure; that the question re-framed by the Revenue on which the appeal has been admitted lacks characteristics of a 'question of law' and much less a 'substantial question of law'; that when all the records & documents having been seized were in the custody of CBI, the AO ought to have summoned the same & examined, if they could support the claim of Assessee; this having not been done, the appeal is liable to be dismissed; lastly, that in any circumstance, the AO could not have made use of proceedings for the preceding Assessment Year. So arguing, he seeks dismissal of the appeal. II. BRIEF FACTS OF THE CASE: