TMI Blog2005 (7) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... R. S. Agarwal for the assessee. JUDGMENT The judgment of the court was delivered by Rajes Kumar J.— The Income-tax Appellate Tribunal has referred the following two questions under section 256(2) of the Income-tax Act (hereinafter referred to as "the Act"), relating to the assessment year 1982-83 for opinion to this court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in disapproving the Assessing Officer's action in making addition of Rs. 89,000 (should be Rs. 89,500) on account of income from undisclosed sources within the meaning of section 68 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business, inexperience, low sales, refund of deposits, cancellation of ISI recognition certificate, absence of power connection forcing the assessee to use its own engine for working its machineries so on so forth, apparently the consumption shown by the assessee is on a very high side. For 273 engines produced he has utilised 1,105 injectors. Even if the theory of replacement before sale due to use and consequent damage by the assessee's own user is accepted, an additional 273 complete injectors can be considered to have been consumed. Of course, certain observations of the Income-tax Officer, like paucity of staff and sale out of books are not supported by facts. The assessee has debited a sum of Rs. 82,210 in the wages account. Moreover, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 to 10 and 20 would come to Rs. 1,50,980. The Income-tax Officer is accordingly directed to restrict the disallowance under these heads to Rs. 89,500." 3. Against the order of the Commissioner of Income-tax (Appeals), the assessee filed appeal before the Tribunal challenging the addition of Rs. 89,500 which was sustained by the Commissioner of Income-tax (Appeals) towards extra consumption of fuel injector. It appears that the Revenue has filed appeal challenging the reduction of addition from Rs. 1,50,980 to Rs. 89,500. The Tribunal rejected both the appeals filed by the assessee as well as the Revenue and sustained the order of the Commissioner of Income-tax (Appeals). The Tribunal held as follows : "We have given our careful cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets has taken place in every case. Even if it is presumed that it was so, the additional consumption would have been 273 injector sets. The assessee's claim is that in some cases the replacement has been more than once. In our view, on consideration of the facts and circumstances of the case, the estimated 273 sets of fuel injector takes care for the replacement of the equipment more than once when we consider that in some of the cases no replacement had been made. The estimate made by the Commissioner of Income-tax (Appeals) seems to us most reasonable and no interference is called for. The addition thus sustained on account of excess consumption of fuel injector equipment sets is hereby confirmed. It is not necessary for us to deal wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hu Chopra, learned standing counsel appearing on behalf of the Revenue, and Sri R. S. Agarwal, learned counsel of the assessee. 5. Learned standing counsel submitted that the Tribunal has illegally confirmed the order of the Commissioner of Income-tax (Appeals) deleting a sum of Rs. 89,500 which was added by the assessing authority towards unexplained cash credit under the head "Dealership security account" under section 68 of the Act inasmuch as the dealer has failed to prove the genuineness of the deposit, identity and creditworthiness of such depositors. Learned counsel for the assessee submitted that the question raised did not arise from the order of the Tribunal because no appeal was filed by the Revenue before the Tribunal agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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