Case: M/S D.B. Bandodkar &amp; Sons Private Limited Vs. The Assistant Commissioner of Income Tax &amp; Another

note or other document. In support of his claim statement obtained from M/s. OGPL of their hospet ore which showed that M/s. OGPL had sufficient stock when transfer to the assessee company took place. The assessing officer held that M/s. OGPL is sister concern of assessing company and in the absence of any other supporting evidence on the basis of book entries could not be relied upon. The assessing officer observed that these entries at the best would be in the nature of supporting evidence that could be of some help to the assessing company along with other relevant proof regarding actual movement of stock and since no proof of movement of material was made available at the time of survey or subsequently and no bills for loan of cargo were raised by the appellant during the year. The assessee was unable to submit any proof or evidence in support of their claim. The Assessing officer did not accept the contention of the appellant that there was no necessity for raising any debit note or any other documents in respect of the transaction of crores of rupees, and therefore, in the absence of any evidence, the claim of the assessee was rejected. This order was confirmed by Commissioner of Income Tax( Appeals).3. Before the Commissioner Appeals also it was urged that Commissioner of Income Tax has failed to appreciate the facts of the case during the relevant year and passed an order without stating why the facts were ignored and why the reliance was placed only on the purchase bills. It was contended that inter office communication clearly shows the type of ore exported in respect of each shipment during the year and copies of these correspondence in the 2004-05 are enclosed as Annexure 3. The Commissioner of Income Tax again after going through the material did not accept the contention of the appellant and has observed that appellant has not furnished any income correspondence or transaction receipt in support of his claim that iron ore belong to M/s. OGPL has been borrowed by the appellant company. The Commissioner of Income Tax has observed in its order as under:-It is quite unbelievable that when substantial quantity of 18869 MT of iron ore belongs to M/s. OGPL, there was no reason why the said material was lying at the railway plot belonging to the appellant company and not at the premises of M/s. OGPL. It may be mentioned that the appellant purchases high grade iron ore from Hospet/Bellery region and mix the same with low grade iron ore in Goa and make them into saleable grade and thereafter, export them. It has been widely reported in press that huge quantity of high grade ore has been illegally mined in Karnataka over the last several years and most of them have been sold without being accounted. It is quite apparent that the appellant has purchased the high grade 18869 MT of iron ore without recording in the books of account and after mixing it with low grade stock, has exported in various consignment abroad. He has further observed that during the course of argument he has submitted five inter-office correspondences. The Commissioner of Income Tax has observed that this reflect only grade wise order loaded in various vessels and details of tonnage and moisture content. However, in none of the documents, there is any mention of temporary loan of iron ore from M/s. OGPL to the appellant company and therefore on this ground appeal was rejected. Same was the case in respect of next assessment year. The Assessing Officer and the Commissioner (Appeals) passed an order against the appellant which order was confirmed by Commissioner of Income Tax. Two appeals were filed before Income Tax Appellate Tribunal bearing ITA No. 191 and 192/ONJ/2011 which were disposed of by common order.4. Before Income Tax Appellate Tribunal an application was filed for bringing additional evidence on record. The said application was rejected and both the Income Tax Appeals were rejected and were dismissed and the order passed by lower authority was confirmed.5. Learned Counsel appearing on behalf of the appellant firstly submitted that in rejecting the application for bringing additional evidence on record it was submitted that the relevant material was available with the assessing officer and he ought to have perused the said material on record. He submitted that assessing officer has observed that the entries in the books of account could be held to be supportive evidence in support of primary material and when other relevant documents and account will be produced. In view of this finding the application for bringing additional evidence on record ought to have been allowed. It was contended that Income Tax Appellate Tribunal and lower authority had given incorrect finding. Learned Senior Counsel has taken us to the observation made by Income Tax Appellate Tribunal and the assessing officer.6. In our view no substantial question of law will arise in this appeal and all the three authorities have taken into consideration material which is on record and have carefully given their finding. Inspite of the several opportunities given to the appellant the documentary evidence was not produced on record to establish the same and only at the time of hearing of the appeal before Income Tax Appellate Tribunal an application for bringing additional evidence on record was filed even then the said application was considered and was rejected by reasoned order.7. In our view, therefore, no case is made out for interfering with the orders passed by the authorities below. All the authorities have considered the evidence on record. The appellant on the other hand is not being in a position to establish or to give satisfactory reason in respect of unaccounted iron ore to the tune of 18869 M. T. The Income Tax Appellate Tribunal was justified in rejecting the application for bringing additional evidence on record and also dismissed the Income Tax Appeals No. 191 and 192 of 2011 for the year 2005-06 and 2006-07.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]6. In our view no substantial question of law will arise in this appeal and all the three authorities have taken into consideration material which is on record and have carefully given their finding. Inspite of the several opportunities given to the appellant the documentary evidence was not produced on record to establish the same and only at the time of hearing of the appeal before Income Tax Appellate Tribunal an application for bringing additional evidence on record was filed even then the said application was considered and was rejected by reasoned order.7. In our view, therefore, no case is made out for interfering with the orders passed by the authorities below. All the authorities have considered the evidence on record. The appellant on the other hand is not being in a position to establish or to give satisfactory reason in respect of unaccounted iron ore to the tune of 18869 M. T. The Income Tax Appellate Tribunal was justified in rejecting the application for bringing additional evidence on record and also dismissed the Income Tax Appeals No. 191 and 192 of 2011 for the year