GYANCHAND TARACHAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under s. 256(2) of the IT Act, 1961 (`the Act').

(2.) THE material facts giving rise to this application briefly are as follows: THE assessee is a registered firm. During the asst. yr. 1974-75, the assessee derived income from sale of groundnut and from ginning of cotton. THE assessee did not maintain day-to-day record of consumption of groundnut and production of dana. Hence, the ITO and on appeal, the AAC and the Tribunal held that the assessee had failed to explain the difference of 35 quintals taking the yield of dana from dried groundnut at 70 per cent. In this view of the matter, the Tribunal upheld the addition of Rs. 11,970 to the total income of the assessee. THE Tribunal also upheld the addition of Rs. 1,200 in the total income of the assessee on account of excess shortage shown in the kapas account. Aggrieved by the order passed by the Tribunal the assessee sought a reference, but the Tribunal held that the decision of the Tribunal was based on the appraisal of the relevant facts on record and did not give rise to any question of law. THE Tribunal, therefore, rejected the application for reference. Hence, the assessee has filed this application, praying that the Tribunal be directed to refer the following questions of law: