HARSHILA CHORDIA Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) THIS appeal at the instance of the assessee is directed against the order of the Income -tax Appellate Tribunal, Jodhpur Bench, Jodhpur, dated January 31, 2002, arising out of Income -tax Appeal No. 45/(Jdpr)/2000 for the assessment year 1993 -94.

(2.) THE assessee was appointed as a sub -dealer of M/s. Ganesh Automobiles, Udaipur, for the sale of Bajaj scooters and mopeds in the region. The questions as have been framed at the time of admission of the appeal read as follows:

(3.) THE Commissioner of Income -tax (Appeals) on appeal found in favour of the assessee that such exceptional circumstances did exist. The Commissioner of Income -tax (Appeals) found that as per the assessee's explanation he had opened a bank account at Udaipur where the principal dealership existed with clear stipulation with the dealer that the remittances of the cash received by him from the customers of such dealer will be paid firstly in the bank account of the assessee. Signed cheque book was given to the principal dealer so that he could get payment of purchase price from the assessee through cheques with him by withdrawing the amount of sale price from bank. The Commissioner of Income -tax (Appeals) also found that the assessee was only to purchase the vehicles from the principal agent as a sub -dealer and she has no option to buy the vehicles from other dealers. In these circumstances, the Commissioner of Income -tax (Appeals) was of the opinion that the assessee has discharged her burden and additions should not be sustained on technical ground, if the principal dealer has retained cash payment with him without routing it through the assessee's bank account at Udaipur, whenever such situation has arisen.