PREM KUMAR Vs. COMMISSIONER OF INCOME TAX, BATHINDA

JUDGEMENT

(1.) This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 29.5.2009, Annexure A.3, passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar in ITA No.86(ASR)/2009, for the assessment year 2005-06. The appeal was admitted on 12.5.2010 to consider following substantial questions of law:-

(2.) A few facts relevant for the decision of the controversy involved, as narrated in the appeal may be noticed. The assessee, an individual filed his income tax return for the assessment year 2005-06 on 31.7.2005 declaring income at Rs. 93,094/- with ITO Ward 2(1) Bathinda. He claimed business loss of Rs. 9,94,000/- to be carried forward. The return was processed under section 143(1) of the Act. The case was selected for scrutiny and notice was issued to the appellant. He appeared before the Assessing Officer and submitted written submissions including documentary evidence. The assessment was completed under Section 143(3) of the Act vide order dated 28.12.2007, Annexure A.1 by making certain additions. The claim for loss on sale and purchase of cotton at Rs. 9,94,000/- to be carried forward was disallowed by the Assessing Officer.

(3.) Learned counsel for the appellant submitted that the amount of Rs. 9,94,000/- which was allegedly received from M/s Manoj Trading Co. was a genuine receipt. The Assessing Officer while deciding the issue against the assessee vide order dated 28.12.2007, Annexure A.1, had recorded as under:-