TMI Blog1990 (2) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... called for in view of such inflation and whether such finding of the Tribunal was otherwise unreasonable and/or perverse ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal misdirected itself in law in deleting the addition of ₹ 11,00,000 ? 3. Whether, on the facts and in the circumstances of the case and in view of the fact that the opening stock of the year was valued at the same figure as the closing stock of the proceeding year and such valuation of the closing stock of the preceding year had not been disturbed for the purpose of the assessment to income-tax of the profits, the Tribunal was correct in law in holding that a revaluation of opening stock of the year under consideration had to be made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case that the switch over to the new method of purchase took place only at this time. (iv) Even though prices started rising they never reached the level at which the assessees purchases were alleged to have been made. This fact was supported by the Jute Bulletin published by Indian Central Jute Committee which are the prices ruling in Bihar. The assessees representative supported the purchase prices by producing quotations from a Calcutta firm, A. M. Mayer Co. Ltd. but these quotations were of prices ruling at Calcutta and were rejected by the ITO as inadequate evidence. (v) The report of the Indian Central Jute Committee further showed that during April, 1951, transactions in Bihar were confined to only an interior quality of jute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which in its turn received the sum from M/s. Durgadutt Chandiprosad. (ix) The voucher produced in respect of purchase alleged to have been made through Durgadutt Chandiprosad did not inspire any confidence. They appear to have been written at a stretch. They did not contain any particulars regarding the quality of jute purchased. This further indicated that the so-called agent had no transactions except with the assessee and possibly with some other concerns of the group. According to the ITO inflation in the raw jute purchases price ranged from ₹ 25 to ₹ 35 per md. Considering this aspect and the nature of the transactions relating to the sum of ₹ 11 lakhs, the ITO added back a sum of ₹ 11 lakhs as excess purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee contended before the AAC that if the closing stock was to be revalued at the average cost price, same method of valuation should be applied in respect of the opening stock of the year and to the extent the opening stock was undervalued, the assessee should be given a deduction. The AAC rejected the above contention. He found that the figure of the opening stock was the same as the figure of the closing stock as disclosed by the assessee for the preceding year and that the said figure of the closing stock was accepted in the assessment of the proceeding year. He held that in these circumstances, there could not be any deviation in the value of opening stock. He further observed that the opening stock of the jute for the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und and allow appropriate relief to the assessee. 3. The Tribunal in its order has noted that the case related to the asst. yr. 1952-53. The order of the Tribunal was passed on 12th September, 1977. The disputed questions of fact were involved. The Tribunal commented that after a lapse of 25 years the facts were very difficult to ascertain. Since then another 12 years have gone by. The case could not be taken up because the Paper Book had not been filed on behalf of the Commissioner in time. Now that the case has been taken up, we find that there is some basis on which the Tribunal came to its decision on the first two questions, which are basically of fact. 4. The third question relates to revaluation of stocks and is a mixed questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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