MADHU SOLANKI Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) The appellant is an individual assessee carrying on business in iron and steel in the name of M/s.Madhu Steels. She filed a return of income for the assessment year 1998-99 declaring income from business at Rs. 68,594.00 and from other sources at Rs. 8,091.00, in all total of Rs. 76,685.00. The case was selected for scrutiny and notice under Sec. 143 (2) was issued. Assessing officer passed an assessment order and determined the total income at Rs. 2,27,940.00. Thereafter the premises were subjected to survey under section 133A of the Income Tax Act. Statements were recorded of the appellant. Based on the submissions the assessments were reopened. The assessing office thereafter proposed to add a sum of Rs. 46,61,745.00 as bogus creditors in respect of credit purchases made by the appellant from M/s.Magnum Trading Company and M/s.Sharada Enterprises. The assessment order was passed adding the said amounts. Aggrieved by the same, an appeal was filed before the CIT (Appeals) which was dismissed. Aggrieved by the same, an appeal was filed before the Tribunal which was also rejected. Hence, this appeal.

(2.) By the order dated 28.10.2010, the appeal was admitted to consider the following substantial questions of law:

(3.) Both the learned counsels submit that the substantial questions of law require to be re-framed. Therefore, they have addressed arguments with regard to the same.