COMMISSIONER OF INCOME TAX Vs. WILLIAMSON TEA

JUDGEMENT

(1.) These appeals by the Revenue under Section 260-A of the Income Tax Act, 1961 (for short, hereinafter referred to as 'the Act') and preferred against the orders dated 31.8.2007 of the Income Tax Appellate Tribunal, Gauhati Bench, Guwahati in ITA Nos. 7(Gau)/2001, 74(Gau)/2001 and 35 (Gau)/2002 corresponding to the assessment years 1996-97, 1997-98 and 1998-99 having been analogously heard, the present adjudication would answer the common question of law framed. By the orders impugned, the cross objections filed by the respondent-assessee were also disposed of.

(2.) We have heard Mr G.K. Joshi, Senior Advocate assisted by Mr. S.Sarma, Advocate for the Revenue and Dr. A.K. Saraf, Senior Advocate assisted by Ms N. Hawelia, Advocate for the respondent.

(3.) The facts in bare essentials indispensable for the present pursuit disclose that the respondent is an assessee under the Act as a company engaged in the business of growing, manufacturing and selling of tea. It submitted its return for the assessment years 1996-97, 1997-98 and 1998-99 showing, amongst others, expenditure of Rs. 1,02,75,000.00, Rs. 1,30,41,600.00 and Rs. 1,17,80,000.00 as pay-ments made by it to M/s Gladioli Estates (P) Limited, Kolkata (for short, hereinafter referred to as 'GEPL') for supply of organic manure for the aforementioned assessment years. The Assessing Officer, however, added these amounts to the income of the assessee and finalized the assessments under Section 143 of the Act.