TMI Blog2003 (9) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner - The conclusion of the Tribunal is purely based on appreciation of evidence and is essentially one of fact - Revenue appeal dismissed - - - - - Dated:- 30-9-2003 - Judge(s) : D. K. JAIN., MADAN B. LOKUR JUDGMENT The judgment of the court was delivered by D. K. JAIN J. - This appeal by the Revenue under section 260A of the Income-tax Act, 1961 (for short "the Act"), is directed against the order dated October 1, 2002, passed by the Income-tax Appellate Tribunal, Delhi Bench "C", Delhi (for short "the Tribunal") in I. T. A. No. 388 (Delhi) of 1996, pertaining to the assessment year 1990-91. The factual position, as highlighted by the appellant, is as follows: The assessee, a registered firm, derives income from purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re entries in the books of account of Patel Roadways were not sufficient to come to the conclusion that the amounts in question represented income of the assessee from undisclosed sources. A commission was issued by the Assessing Officer to the ADI, Coimbatore to provide an opportunity to R. K. Gupta to cross-examine the witnesses, who had alleged that cash was paid to them to get the drafts prepared, which was done. Not being satisfied with the explanation furnished, the Assessing Officer came to the conclusion that the assessee had concealed its sales and had received back the amounts from various parties after discounting the drafts. He worked out such concealed sales at Rs. 15,82,487, representing the difference between the goods disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Consequently, the Commissioner deleted both the additions. Aggrieved, the Revenue took the matter in further appeal to the Tribunal but without any success. Hence, the present appeal. According to the appellant, the order of the Tribunal involves the following substantial questions of law: "(1) Whether the order of the Income-tax Appellate Tribunal passed in I. T. A. No. 388 (Delhi) of 1996 is perverse on account of non application of mind by the learned Tribunal? (2) Whether the Income-tax Appellate Tribunal was justified in the eyes of law to completely rely on the order of the Commissioner of Income-tax (Appeals) without applying its mind that the said order of the Commissioner of Income tax (Appeals) cannot be said to be valid o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons or matters of prejudice . . . On no account whatever should the Tribunal base its findings on suspicions, conjectures or surmises nor should it act on no evidence at all or on improper rejection of material and relevant evidence or partly on evidence and partly on suspicions, surmises or conjectures'. (5) Whether the Income-tax Appellate Tribunal was justified in the eyes of law to ignore its statutory duty to re-examine all the facts of a case before it before passing any order instead to completely rely on the order of the Commissioner of Income tax (Appeals) and quote the finding in its order without applying its judicial mind. Such order cannot be said to be valid, legal and proper in the eyes of law? (6) Whether the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is limited and is confined to entertaining only such appeals against orders, which involve a substantial question of law. Though the expression "substantial question of law" is not defined in the Act or any other statute, where a similar expression appears but by virtue of various pronouncements, it has acquired a definite connotation and meaning. Recently in Santosh Hazari v. Purushottam Tiwari |2001] 251 ITR 84 (SC), while dealing with an analogous provision contained in section 100 of the Code of Civil Procedure, 1908, the apex court reiterated the tests laid down by the Constitution Bench in Chunilal V. Mehta and Sons Ltd. (Sir) v. Century Spinning and Manufacturing Co. Ltd., AIR 1962 SC 1314, for determining whether a question of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that the statements of some of the persons had, at best, given rise to a doubt about the correctness of the accounts of the assessee but in view of apparent contradictions in these statements, vis-a-vis their cross-examination, these were not sufficient to call for rejection of accounts of the assessee. The Tribunal has also found substance in the observations of the Commissioner that there was no logic in conducting sales outside the books of account in such a round about manner, as alleged by the Assessing Officer, when it would have been much easier for the assessee to go ahead with the sales and pocket the money at Coimbatore. The conclusion of the Tribunal is purely based on appreciation of evidence and is essentially one of fact. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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