COMMISSIONER OF INCOME TAX Vs. G.K.PATEL

JUDGEMENT

(1.) The appellant revenue has challenged order dated 5th August, 2011 made by the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal') in relation to assessment year 2006-07 by proposing the following two questions:-

(2.) Ms. Paurami Sheth, learned senior standing counsel for the appellant, assailed the impugned order by submitting that the assessee had failed to explain as to why such huge amounts of payments were made in cash and the Assessing Officer after considering the material on record had given detailed reasons for disallowance of diesel expenses paid in cash. Under the circumstances, the Tribunal was not justified in sustaining deletion of the addition made on this count.

(3.) As can be seen from the impugned order, the Tribunal upon appreciation of the evidence on record has concurred with the findings recorded by the Commissioner (Appeals) who had granted relief to the assessee on the basis of the confirmatory letter given by the officer in charge of Bharat Petroleum Limited stating that diesel worth Rs. 82,20,254/- was supplied by it to the assessee. The Tribunal has further taken note of the fact that the confirmatory letter issued by BPL clearly mentioned that the bills issued to the assessee have also been verified before issuance of the certificate. Considering the fact that the petrol pump of Bharat Petroleum Limited was run by the company itself, the Tribunal was of the view that the contents of the certificate could not be doubted and accordingly upheld the deletion made by the Commissioner (Appeals).