9911796707
TMI Blog1989 (8) TMI 375X X X X Extracts X X X X X X X X Extracts X X X X ..... rial and/or was occasioned by the failure to consider material evidence ?" 2. The assessment year involved is 1971-72 for which the relevant year of accounting is 2027 R.N. The facts as stated by the Tribunal in the statement of case is as under : The assessee is a dealer in scrap matter. While examining the assessee's bank account with the State Bank of India, Siliguri along with the books of accounts Moolji Iron & Steel Industries, the ITO found that the assessee had overdraft of ₹ 1,99,403 as on 3rd April, 1971, the last day of the previous year relevant to the assessment year under appeal. The ITO asked the assessee to file a letter from the State Bank of India, Silliguri showing goods hypothecated or pledged on 3rd Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, however, did not carry conviction with the AAC. He accordingly held that the circumstantial evidence regarding the insurance that no stocks at Khalpara were insured, was not accepted by the ITO. The affidavit filed by Sri Puranmal Agarwalla had also evidentiary value. In fact, this affidavit affirmed that for a long period of time the firm went on furnishing false and fabricated statement to the State Bank of India, Siliguri for the purpose of obtaining credit facilities. but the Manager of the State Bank of India, Siliguri categorically stated that on inspection by bank official the stock statements furnished by the assessee had been found to be correct. On the basis of the all these facts, the AAC came to the conclusion that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accounts of the bank. The assessee has also not been able to produce any evidence regarding the margin allowed by the bank. But surprisingly the assessee has never been able to give the percentage of the margin on the goods pledged with the bank. The fact of the matter is that the assessee had pledged stocks with the bank about which it did not give any cogent and convincing explanation to the ITO. The assessee had thus been playing fast and loose and blowing hot and cold in the same breath. Instead of making such shifting statement the assessee should have tried to reconcile the figures. It is not necessary in the case of this type to give inference regarding the realities of the situation. The assessee must face the hard and logical fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk is a valuable piece of evidence. What weight is to be attached to that evidence must be decided by the Tribunal having regard to all the surrounding circumstances. 4. The Supreme Court in the case of CIT vs. Durga Prasad More reported in 1973 CTR (SC) 500 : (1971) 82 ITR 540 (SC) observed that science has not yet invented any instrument to test the reliability of the evidence placed before a Court or Tribunal. Therefore, the Courts and Tribunals have to judge the evidence before them by applying test of human probabilities. Human minds may differ as to the reliability of a piece of evidence. But in that sphere, the decision of the final fact-finding authority is made conclusive by law. The Supreme Court further observed that at any rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
