LAXMI TRADING CO. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Being aggrieved and dissatisfied with the impugned judgment and orders passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C ' (hereinafter referred to as 'the Tribunal ') dtd. 13/5/2004 in ITA Nos. 3800/Ahd/2003, 3801/Ahd/2003 and 3802/Ahd/2003 for the Assessment Years 1993-94, 1994-95 and 1995-96 respectively, the assessee has preferred the present Tax Appeals.

(2.) During the course of assessment proceedings the Assessing Officer reopened the assessment u/s 147. The Assessing Officer also made an addition of Rs.6,50,593.00 u/s 69 of the Income Tax Act on the ground that the assessee had purchased demand drafts of the value stated from The Baroda Traders Co-operative Bank Ltd and Shree Bharat Co-operative Banl Ltd., Fatehpura, Baroda.

(3.) Mr. J.P. Shah, learned advocate appearing with Mr. Manish Shah, learned advocate for the assessee has stated that the Tribunal has erred in not following the ratio laid down by the Supreme Court in Kishinchand Chellaram vs. Commissioner of Income Tax reported in 125 ITR 713 wherein it is held as under: