V K MOOSAKUTTY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law is referred by the Income -tax Appellate Tribunal, for short 'the Tribunal', as directed by this Court in the judgment dt. 10th Nov., 1998, in O.P. No. 12962 of 1998, at the instance of the assessee :

(2.) THE first appellate authority in Annexure -B order has clearly noted that the Dy. CIT vide his order dt. 24th Oct., 1988, directed the AO to make an addition of Rs. 2 lakhs on account of inflated opening stock made in the accounts for the accounting year relevant to the asst. yr. 1986 -87, and that the assessing authority has made the addition accordingly. The first appellate authority after referring to the relevant portions of the Dy. CIT's order held in para. 5 of the order that though the addition of Rs. 2 lakhs is on estimate basis, it is based on the discrepancies observed by the Dy. CIT, and that the addition of Rs. 2 lakhs directed by the Dy. CIT is based on a clear finding of fact. We find that the Tribunal has also considered the issue with reference to the order of the Dy. CIT. The Tribunal has noted in para. 4 of the order as follows :

(3.) THE IT reference is dismissed with the above observations.