9911796707
TMI Blog1972 (11) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, is a partnership firm registered under the Indian Partnership Act. The assessee is a dealer in various grains. It filed return of income for the assessment year. Along with its return a summarised trading account was also filed. According to the statement of trading account, the assessee, claimed shortage of 1,017 Kgs. in maize, 2,117 Kgs. in gram and 13,746 Kgs. in jowar on account of driage, handling and storage, etc., during the year of account. The shortage claimed by the assessee on the basis of the statements furnished by it was found to be reasonable by the Income-tax Officer and, the same was allowed by him while passing the order of assessment for the year in question. However, on examining the books of account of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to twelve months. After considering the notification and materials on the record the Tribunal came to hold that it would be fair and reasonable to allow shortage at the rate of 2.5% in respect of maize, 1.2% and 2.65% in respect of gram and jowar, respectively. Accordingly, the Tribunal restricted the addition to the value, of shortage in excess of the percentage allowed by it. The department was not satisfied with the finding of the Tribunal, and, therefore, moved an application under section 256(1) of the Act before the Appellate Tribunal with the prayer that the following question of law arising out of the order of the Tribunal may be referred to this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is not an iota of evidence to sustain the finding of the Tribunal. In order to examine the contention of the learned counsel we deem it proper to notice a few cases bearing on the point. In Sree Meenakshi Mills Ltd. v. Commissioner of Income-tax it has been held that " finding on a question of pure fact arrived at by the Tribunal is not to be disturbed by the High Court on a reference unless it appears that there was no evidence before the Tribunal upon which they, as reasonable men, could come to the conclusion to which they have come ; and this is so, even though the High Court would on the evidence have come to a conclusion entirely different from that of the Tribunal. " In Sovachand Baid v. Commissioner of Income-tax the Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing those shortages. As pointed out earlier, the proper method of recording the shortage would have been to show it in the trading account after recording the quantities of opening stock and purchases and sales and closing stock. But this alone should not operate to prejudice the assessee's case so as to sustain an addition of Rs. 45,000, if the ultimate shortage claimed by the assessee is well within the permitted percentage of shortage." Admission of the assessee made in the books of account, therefore, could not be taken as a safe basis for arriving at the correct quantum of shortage. The Tribunal has relied upon the Government notification for arriving at the permitted percentage of shortage. The notification was placed before the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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