TMI Blog1980 (9) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee declared income of Rs. 3,27,966. An audited copy of the profit and loss account for the period under consideration and balancesheet as on March 31, 1969, were filed. The ITO found fault with the figures mentioned in the return and for a number of reasons given in his order estimated the sales at rupees seventy lakhs and by applying the gross profit rate of 25% be worked out the total gross profit, which the assessee should have shown, at Rs. 17,50,000. He thus made an addition of Rs. 7,72,953 (Rs. 17,50,000-Rs. 9,77,047). Loss on exports claimed at Rs. 83,766 was disallowed without any discussion in the assessment order. The assessee filed an appeal before the AAC who upheld the addition of Rs. 7,72,953. The assessee filed a se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollen General Mills Co. Ltd., Kharar, (c) Mohan Woollen Mills, Amritsar, (d) Swastika Knitting Spinning Mills, Ludhiana, and (e) Adarsh Spinning Mills, Ludhiana. " The Tribunal did not permit the Revenue to rely on these documents as according to the Tribunal no opportunity was allowed to the assessee to rebut the material contained in these documents. Similarly, it was pleaded on behalf of the Revenue that imported wool tops and yarn spun out of such wool tops were being sold at premium and, therefore, it should be held that the assessee also charged premium on sale of imported wool tops and yarn prepared out of such tops. With a view to support this contention, the Revenue sought to rely on the following documents: " (i) A volun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s opinion, which application has been dismissed by the Tribunal: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that neither proviso to section 145(1) nor section 145(2) is applicable ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Income-tax Officer had erred in adding Rs. 4,23,038 to the income of the assessee after rejecting his account version ?" The Revenue has approached this court under s. 256(2) of the Act with the prayer that the following two questions be got referred to this court for its opinion : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortunity to rebut the material. The misdirection of the Tribunal on this aspect, according to Shri Awasthy, the learned counsel for the Revenue, certainly raises a question of law in view of the facts and circumstances of this case. Shri Bhagirath Dass, the learned counsel for the assessee, has vehemently argued that no plea was raised by the Revenue before the Tribunal that the assessee be given an opportunity to rebut the material which was sought to be relied upon by the Revenue and that the same material be taken into consideration and, therefore, this question will not arise out of the order of the Tribunal, we are unable to agree with this contention. The whole matter before the Tribunal was whether the Revenue should be allowed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year of account, the proviso to section 10(2)(vii) had no application, and that it was a new question which they were not entitled to raise. We do not agree with this contention. Section 66(1) speaks of a question of law that arises out of the order of the Tribunal. Now a question of law might be a simple one, having its impact at one point, or it may be a complex one, trenching over an area with approaches leading to different points therein. Such question might involve more than one aspect, requiring to be tackled from different standpoints. All that section 66(1) requires is that the question of law which is referred to the court for decision and which the court is to decide must be the question which was in issue 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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