AMRIT SUGAR COMPANY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS appeal was admitted on the following substantial question of law:

(2.) WHETHER the Tribunal was correct in upholding the disallowance made under 40 -A (3) even when the Appellant had produced receipt on record to prove that each payment constituted a different transaction. That further the Tribunal has been right in holding that the receipts issued by the persons to whom the payment has been made does not constitute evidence in support of the contention that each payment constituted a separate and distinct transaction?

(3.) THE answer to this objection is that once the Appellant was challenging the very basic action of rejecting the books of accounts of the Assessee and once the books of accounts are rejected, the Assessee has a right to claim that his income should not be computed twice and added over twice.