COMMISSIONER OF INCOME TAX Vs. NEW STANDARD AUTOMOBILES

JUDGEMENT

(1.) : The CIT has proposed two questions. We are of opinion that first is a question of fact because the Tribunal has found that the books are not reliable and sustained an estimated addition having regard to the past history of the assessee. In our opinion, however, the second question which has been raised is a question of law particularly in view of the specific finding of the CIT (A) that certain payments were not covered by s. 40A(3). We therefore direct the Tribunal to state a case and refer the following questions of law for the decision of this Court :

(2.) THE petition is disposed of No costs. 13th March, 1987 By the Court : By our order dt. 25th Feb., 1987 in ITC 207/82 we directed the Tribunal to state a case and refer the second of the questions on which the CIT had sought reference. At that time it was brought to our notice that in the appellate order of the Tribunal no findings had been given in relation to the applicability of s. 40A(3) of the Act. THE assessee now brings to our notice that the Tribunal had dealt with this matter in subsequent order under s. 254(2) in which they have given a finding that none of the purchase was of more than Rs. 2,500. In view of this fact which was not brought to our notice on the earlier occasion, it is clear that the question of law or which we directed the Tribunal to state a case does not also arise. In the circumstances the order dt. 25th Feb., 1987 is recalled and ITC 207/82 is dismissed. THEre will be no statement of case by the Tribunal on any of the question referred to in the application. This application is disposed of accordingly.