TMI Blog2000 (8) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... le on the assessee for the assessment year 1961-62 ?" The background facts necessary for disposal of the reference are essentially as follows : The assessee is a private limited company which at the relevant point of time was doing business as contractors for unloading of foodgrains from ships at Bombay port and transport of the grains from the port to various Government depots. For the assessment year 1961-62, relating to the accounting period ending June 30, 1960, a notice of demand under section 18A of the Indian Income-tax Act, 1922 (hereinafter referred to as the "old Act"), was issued requiring the assessee to pay Rs. 2,42,842 as advance-tax. On September 15, 1960, the assessee filed an estimate declaring a loss and estimated its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and the Department, and similarly out of the losses payable to the Regional Director of Food a sum of Rs. 24,388 was clearly allowable and, therefore, there was no occasion for saying that the assessee had deliberately furnished a false estimate. The Tribunal came to hold that penalty under the circumstances of the case should not have been levied for the estimates submitted by the assessee were in conformity with the books of account maintained by it and that the addition in respect of bogus purchases ultimately accepted by the assessee did not convert the loss into profit by itself. So far as the other additions are concerned, there was scope for a difference of opinion between the assessee and the Department and that would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r true to his knowledge or not is a question of fact. The conclusions of the Tribunal are essentially factual in nature. Whether somebody could bona fide make an estimate of the income and that too on the basis of books of account maintained by it is purely a question of fact. The Tribunal has found as a matter of fact that the estimate filed by the assessee was in conformity with its books of account. Additions ultimately accepted did not convert the loss into profit by itself. So far as the other additions are concerned they related to additional claims and liability to the Regional Director of Food. So far as the first item is concerned, though there was no doubt about the nature of the claim, there was controversy as regards the exact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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