COMMISSIONER OF INCOME TAX Vs. M K BROTHERS

JUDGEMENT

(1.) THE Tribunal has referred the following question for opinion of this Court :

(2.) IN the meantime, the sales tax authorities had carried on certain investigations which revealed that a racket of issuing bogus vouchers by the said parties was prevailing in the market. The ITO also learnt from local inquiries that the parties were not available at the addresses given. Certain confessions were also recorded from Shri Mahendrakumar N. Patel, Proprietor of M/s Alwin Textile Traders, Ahmedabad, and Shri Rasiklal Chandulal Parikh, Proprietor of M/s Brijesh Engineering Products, Ahmedabad, before the STO admitting that no purchases and sales were really effected and the vouchers were bogus.

(3.) THE assessee challenged the order of assessment in appeal before the AAC. The AAC found that the assessee had not been able to produce the parties and, therefore, the burden was not discharged. He also found that the ITO had sufficient material to disbelieve the purchase made from the said parties and, therefore, he held that the addition was justified and he confirmed the order of the ITO.