TMI Blog1964 (9) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the appellant also had a quota of imports worth about ₹ 8,00,000 which would have given them a handsome margin of profit. This again is a relevant fact and it is well-known that imported goods fetch a very handsome margin of profit. Accordingly, we hold that there is material in support of the impugned finding of the Appellate Tribunal. Appeal dismissed. - - - - - Dated:- 21-9-1964 - Judge(s) : K. SUBBA RAO., J. C. SHAH., S. M. SIKRI JUDGMENT The judgment of the court was delivered by SIKRI J.--This is an appeal by special leave granted by this court on November 5, 1962, and arises in the following circumstances. The appellant filed a return showing an income of Rs. 78,350 for the assessment year 1954-55. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no defect in the accounts as such or any suppression of sales. He further remarked that the purchases were vouched, the sales were vouched and the parties involved in these transactions were identifiable. The Income-tax Officer appealed against the above decision to the Income-tax Appellate Tribunal, which restored the addition made by the Income-tax Officer, less the above sum of Rs. 4,490. It was pointed out to the Appellate Tribunal that the Appellate Assistant Commissioner had lost sight of the fact that even in the preceding year goods from the National Carbon Company Ltd. did figure in the trading account of the respondent, and that if these goods are eliminated from the accounts, the margin of profit in the preceding year was 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by its order dated October 3, 1961, dismissed the petition. This court, however, granted special leave to appeal and the appeal is now before us for disposal. Mr. B. Sen, the learned counsel for the appellant, urges before us that the Appellate Tribunal should have referred the question of law posed before it by the assessee. The question of law was in the following terms : " Whether the order of the Tribunal, that the proviso to section 13 was clearly applicable to the trading results in this case, and restoring the addition made by the Income-tax Officer to the extent of Rs. 70,510 is an order made without due consideration of the evidence and relevant materials on record and after considering materials which are irrelevant to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sely the reasons of the Income-tax Officer for rejecting the accounts. " It observed that " whether the accounts are reliable or not is a question of fact, to be determined solely by the Income-tax Officer, and when he gives reasons for doing so, which are not apparently capricious or injudicial, it is not possible to disturb his finding merely on the ground that the material in support of those reasons is meagre or insufficient. " The next case relied on by Mr. Sen is the decision of the Punjab High Court in Pandit Bros. v. Commissioner of Income-tax. The question of law referred to the High Court was " whether any addition may be made to the book version of business profits where no stock account is maintained, on the sole ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which would have given them a handsome margin of profit. This again is a relevant fact and it is well-known that imported goods fetch a very handsome margin of profit. Accordingly, we hold that there is material in support of the impugned finding of the Appellate Tribunal. We may point out that we are not concerned with the correctness of the conclusion and we are only concerned with the question whether there is any material in support of the finding of the Appellate Tribunal. In cases involving the applicability of the proviso to section 13, the question to be determined by the Income-tax Officer is a question of fact, namely, whether the income, profits and gains can or cannot be properly deduced from the method of accounting regularl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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