COMMISSIONER OF INCOME TAX Vs. PRESIDENT INDUSTRIES

JUDGEMENT

(1.) BY this application under S. 256(2), the CIT seeks a direction to the Tribunal, Ahmedabad Bench B, Ahmedabad, to state the case and submit the following question of law said to be arising out of its order in IT Appln. No. 3101/Ahd/1997 for the asst. year 1994 -95 :

(2.) THE facts giving rise to the present case are that during the course of survey conducted on the premises of assessee on 1st Dec., 1994, from the excise records found, inference was drawn by the AO from the movement of finished goods from the premises of assessee to godowns that sales amounting to Rs. 29,01,300 have not been disclosed in the books of account. AO made the addition of the entire sum of the said undisclosed sales as income of the assessee for the asst. yr. 1994 -95. The additions on account of undisclosed sales was affirmed by the CIT(A) to the reduced sum of Rs. 28,35,883. On further appeal the Tribunal found that the entire sale could not have been added as income of the assessee for the assessment year in question but only to the extent the estimated profits embedded in the sales for which the net profit rate was adopted entailing addition of income on the suppressed amount of sales. The Tribunal also found that there is no material on the record to suggest that the assessee made any investment outside books of accounts to make alleged unaccounted sales in respect of the aforesaid appellate order. The applicant made an application under S. 256(1) for referring the aforesaid two questions said to be arising out of Tribunal's order.

(3.) WE are, therefore, of the opinion that no question of law which requires to be referred to this Court arise out of Tribunal's appellate order. The order of Tribunal under S. 256(1) is not erroneous in reaching such conclusion. Application is rejected