TMI Blog2005 (11) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... is lower', adopted by the appellant over the period of years and accepted in assessments framed in those years?" - finding of Tribunal that the explanation offered by the assessee was not found to be bona fide and thus concealed the income to evade tax and this attracts the provisions of section 271(1)(c) are well founded - substantial questions of law raised in the above appeals are answered in the affirmative against the assessee - - - - - Dated:- 10-11-2005 - Judge(s) : P. D. DINAKARAN., T. V. MASILAMANI. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- The above tax case appeals are directed against the common order of the Income-tax Appellate Tribunal in I.T.A. Nos. 1120 of 1997 and 1108 of 2000 dated Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs was justified, based on assumption of certain facts? 2. Whether the Tribunal is correct in confirming the said addition consequent to the revaluation of closing stock of cotton upon ignoring the consistent method of valuation of the said stock of cotton based on 'cost or market price whichever is lower', adopted by the appellant over the period of years and accepted in assessments framed in those years?" The Revenue on completion of the assessment proceedings, issued show cause notice dated December 27, 1996 for initiation of proceedings and to levy penalty. Though a detailed reply was sent by the assessee on January 30, 1997, the respondent by order dated September 25, 1997 imposed penalty of Rs. 14,69,230 on the assessee. In the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hod and it should have been followed. Admittedly, J-34 variety of cotton has two types, i.e., SG and RG varieties, the former being superior than the latter. The Tribunal after perusal of the records, especially the stock registers and purchase bills produced by the assessee, came to the factual conclusion that the cotton variety in dispute is of SG variety valued at Rs. 39.76 per kg. The Tribunal has also found that it is the duty of the assessee to furnish the correct market value of the SG variety of cotton, but instead, the assessee applied the last purchase price of RG variety of cotton for valuing SG variety of cotton. This method of valuation, according to the Tribunal, is incorrect. In view of this lapse on the part of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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