TMI Blog2004 (7) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... y to record the finding of facts on appreciation of evidence, has failed to discharge its duties, we are interfering as the conclusion is perverse. – Held that the findings recorded by the Income-tax Appellate Tribunal are perverse and are quashed and set aside. - - - - - Dated:- 27-7-2004 - Judge(s) : B. C. PATEL., BADAR DURREZ AHMED. JUDGMENT The judgment of the court was delivered by B.C. Patel C.J. - Admit. The question raised by learned counsel for the appellant is that the finding is perverse inasmuch as the Tribunal has confirmed the finding recorded by the Commissioner of Income-tax (Appeals) without any material on record. At the request of learned counsel for the parties, we have taken up the matter for final disposa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during the function". There is no evidence about the dinner. The function was in the evening from 6.30 p.m. to 7.30 p.m. No inquiry is made by the Assessing Officer in this behalf. Though the Assessing Officer observed that "ghazal programme" was held, no payment for sound system was made nor any payment for dinner was made though it "must have been" served when the ghazal programme went on "till midnight" and estimated the expenditure to the tune of Rs. 2,50,000. He did not believe that the amount shown towards expenditure on food, rent, furniture and sound system to the tune of Rs. 31,590, was just and proper. The Assessing Officer again observed as under: "Expenses are also incurred on the guests who must have come from all over t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d between "may be" and "must be". Here, without moving an inch, the finding is recorded. One could have understood if an enquiry had been made and thereafter the conclusion was recorded. No doubt, the Commissioner of Income-tax (Appeals) has reduced the addition to some extent, however, on what material he has reduced the addition is not indicated and on what material the amount is confirmed is also not clear. The Tribunal has confirmed the addition, which has been made by the Commissioner of Income-tax (Appeals). As the Tribunal, being the final authority to record the finding of facts on appreciation of evidence, has failed to discharge its duties, we are interfering as the conclusion is perverse. Under the circumstances, the answer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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