COMMISSIONER OF INCOME TAX Vs. BALAJI DISTILLERIES LTD

JUDGEMENT

(1.) THE Revenue has come up with this petition with a prayer to direct the Tribunal to refer the question set out in the petition, which according to the Revenue arises out of the order of the Tribunal on the appeals filed by the Revenue and the assessee arising out of the assessment of the respondent-assessee's income for the asst. yr. 1992-93.

(2.) THE assessee is a manufacturer of Indian made foreign liquor and the product manufactured by it is sold in bottles. The assessee procures a larger number of second-hand bottles and breakage occurs in the course of transporting the same to the godown and at various subsequent stages thereby resulting in loss. Assessee had been using bottles of 180 ml., 350 ml. and 750 ml. capacities. Assessee had claimed breakages in respect of 375 ml. and 180 ml. bottles. The rate at which the breakages in claimed, in the view of the AO was unacceptable. He was of the view that breakages could not have exceeded 7 per cent in respect of 180 ml. bottles. The AO found that the purchase of bottles had been effected from 3 suppliers. The quantity supplied to the assessee had been reported as part of the turnover of those suppliers. The AO was promoted to regard the assessee's claim as excessive as he had found that the breakage reported by the other competitions was at a lesser rate of 6.8 per cent and 5 per cent, respectively.

(3.) THE facts considered by the Tribunal are all questions of fact and everyone of the authorities had made an estimate; for the AO though 7 per cent was fair, for the CIT(A) 11 per cent was fair while for the Tribunal 15.25 per cent was a reasonable estimate. We cannot prima facie further speculate for the purpose of fixing up yet another rate by way for estimate. The facts have been examined in sufficient depth by the fact-finding authorities and the fact as determined by the Tribunal must be regarded as final.