LAKSHMI ENTERPRISES Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) WE have heard the learned Advocates appearing for the parties namely, Smt. Vani H. appearing for appellant - assessee and Sri K.V. Aravind, appearing for respondent - revenue. We have perused the orders passed by the assessing Officer, CIT(A) and Income Tax Appellate Tribunal, Bengaluru 'C' Bench.

(2.) FOR the assessment year 2008 -09, assessee filed the return of income declaring total income of Rs. 4,26,160/ - besides the agricultural income. After issuing notice under Section 143(2) of the Income Tax Act, 1961 assessment order came to be framed on 31.12.2010 whereunder claim of the assessee of having incurred expenses of Rs. 28,40,160/ - towards "granite raising expenses" came to be disallowed and was held that the liability created by the assessee is an unproved liability and accordingly, the said sum was brought to tax. Being aggrieved by this order, an appeal came to be filed before the CIT(A), who by order dated 29.11.2011 upheld the addition and dismissed the appeal. Assessee pursued his grievance before the Income Tax Appellate Tribunal, Bengaluru 'C' Bench and the Tribunal on re -appreciation of entire facts and perusal of the records was of the view that the order passed by the first appellate authority did not suffer from any legal infirmity calling for interference and as such by order dated 11.07.2014 allowed the appeal in part (on other issues).

(3.) PER contra, Sri K.V. Aravind, learned Advocate appearing for the revenue would support all the three orders passed by the authorities and contends that the finding recorded by the assessing Officer as well as first appellate authority are all questions of fact and as such, the Tribunal also did not find any substance in the contention raised by the assessee and submits that there is no substantial question of law involved in this appeal for being adjudicated and answered. Hence, he prays for dismissal of the appeal.