Allowing the appeal of the revenue the Court held that the Tribunal as the last fact finding authority ought to have considered the materials on record, especially when it was on record that the party had not filed its return. The Department had also raised the issue of the addition on account of non-genuine purchases. The information regarding the non-filing of return by the supplier party which was vital for the verification of the purchases made by the assessee according to the direction given by the Commissioner (Appeals) and therefore the purchase of Rs.3,38,72,852 being added, was provided to the assessee but no contrary material was brought by it to show that the supplier party had filed the return. The order of the Tribunal was unsustainable. Matter remanded. (AY. 2009 -10)
CIT v. Meerut Roller Flour Mills (P.) Ltd. (2019) 412 ITR 155/ 263 Taxman 100 (All.)(HC) /Editorial: SLP of assessee dismissed, Meerut Roller Flour Mills (P.) Ltd. v. PCIT [2020] 113 taxmann.com 522 /269 Taxman 273 (SC)
S. 254(1) : Appellate Tribunal–Duties–Bogus purchases–Direction of CIT(A) was set aside by Tribunal-Recording of fact by Assessing Officer that supplier did not file return—Failure by Tribunal as final fact finding authority to consider facts—Matter remanded to Tribunal for fresh disposal. [S. 37(1), 133(6), 251]