Commissioner Of Income Tax Ii, Chandigarh v. Jasbir Singh And Others

ITA No.458 of 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No.458 of 2009Date of decision 1.2.2010 Commissioner of Income Tax II, Chandigarh... Appellant Versus Jasbir Singh and others... Respondents. CORAM:HON'BLE MR. JUSTICE M.M. KUMARHON'BLE MR. JUSTICE RAKESH KUMAR JAIN Present:Ms. Urvashi Dhugga, Advocate for the appellant 1. Whether Reporters of local papers may be allowed to see the judgement ?2. To be referred to the Reporter or not ? 3. Whether the judgement should be reported in the Digest ? M.M.KUMAR, J. The instant appeal has been filed against order dated 20.2.2009passed by the Income Tax Appellate Tribunal, Chandigarh Bench B (forbrevity 'the Tribunal') passed in ITA No.1020/Chandi/2008 in respect of theassessment year 2005-06. The Assessing Officer as well as theCommissioner of Income Tax (A) have assessed the purchases of fish worthRs. 43,12,297/- being contract payment and has invoked the provisions ofSection 40(a)(ia) of the Income Tax Act, 1961(for brevity 'the Act'). TheTribunal has, however recorded a firm finding of fact that no contractor wasinvolved and an affidavit by a partner of the assessee- firm was also filed.There is nothing to the contrary to prove the statement made on affidavitto be false. The Tribunal has, however, opined that the Assessing Officerhas proceeded on the assumption that a contractor was engaged and itcannot take the shape of evidence. It has rightly relied upon the judgementof Hon'ble the Supreme Court rendered in the case of CITv. Daulat Ram ITA No.458 of 2009 Rawat Mal (1973) 87 ITR 349. Once the factual basis necessary forinvoking the provisions of Section 40(a)(ia) of the Act is missing then it isnot possible to opine that a substantive question of law within the meaningof Section 260A of the Act would arise for determination. The appeal isbased on findings of fact and does not deserve admission. Accordingly, theappeal fails and the same is dismissed. (M.M.Kumar) Judge 1.2.2010okg (Rakesh Kumar Jain)Judge