Itxa/349/2002 Of Daga Fibres P.ltd v. The Asstt. Commissioner Of Income-Tax,Circule-4 (1)(4) And Ors

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO.O.C.J. INCOME TAX APPEAL NO. 349 OF 2002 Daga Fibres Pvt.Ltd. .. Appellant v/s. 1. The Asstt. Commissioner of Income Tax,Circle 4(3), Mumbai & anr... Respondents Mr.M.Subramanian i/by Mr.V.S.Hadade for appellant. CORAM: R.M.LODHA ANDJ.P.DEVADHAR, JJ. DATED:18thAugust, 2004 P.C. Heard Mr.M.Subramanian, the learned counsel for the assessee-appellant. 2. The Tribunal considered the matter thus- "7. In the present case though theidentity of the creditor is established,there are insufficient facts to establishthe creditworthiness of the creditor. Itis obligatory upon the assessee to furnishthe sufficient material to establish thecreditworthiness of the creditor. Thebooks of accounts were not produced by thecreditor. It was not shown that how thecreditor was in the position to advance thesum of Rs.6,50,000/-. The books ofaccounts were not produced by the creditoron the ground that the books were stolen.No evidence or material was produced tosubstantiate that the books of the creditorwere stolen. Even bank account of thecreditor was not produced at any stage.The transactions relating to purchases alsodo not support the financialcreditworthiness of the creditor andgenuineness of the transaction in absenceof any other supporting material. Theassessee had made the purchases from thecreditor for which the payments were madewithin a span of about three months. Theamount of Rs.6,50,000/- which was obtainedby the assessee from creditor in the monthof April remained untouch for whole of theyear. No explanation has been furnished substantial question of law arises. Appeal is dismissed in limine. (R.M.LODHA, J.) (J.P. DEVADHAR, J.)