LADDHA TRADERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE applicant/assessee has filed this application under Section 256(2) of the Income-tax Act, 1961 (for short "the Act"), seeking direction to the Tribunal to state the case and refer the undernoted questions of law arising out of the order passed by the Tribunal on April 10, 1990, in I. T. A. No. 553/Ind of 1985 for the assessment year 1980-81 :

(2.) BRIEFLY stated, the facts of the case are that the applicant filed the return, In the course of the assessment proceedings, the Income-tax Officer found that on several days the sales of kerosene as recorded in the cash book were far in excess of the sales when compared with sales vouchers of that day. It was also noticed that on some days the sales of kerosene as recorded in the cash book were less than those as shown in the sales vouchers. The Income-tax Officer, therefore, called upon the applicant to show cause why the difference in sales between the cash book and vouchers, priced at Rs. 1,40,340, be not treated as concealed sales. The applicant showed the cause in this way that all purchases were made from the Indian Oil Corporation Limited from its Indore depot. The applicant also submitted several documents to show that there was in fact no concealment and also explained the difference in the books and vouchers. The Income-tax Officer, however, did not feel satisfied and made addition of Rs. 1,40,340 and sought the approval of the Inspecting Assistant Commissioner under Section 144B of the Act. The Inspecting Assistant Commissioner approved the proposed addition on the basis of which the Income-tax Officer passed the order of addition of the aforesaid amount (annexure "B"). The applicant then filed the appeal before the Commissioner of Income-tax (Appeals) registered as I. T. A. No. 161/84-85/861. The Commissioner of Income-tax (Appeals) allowed the appeal in part on March 4, 1985, but rejected the contention with regard to the addition of the aforesaid amount (annexure "C"). The applicant then filed second appeal registered as I. T. A. No. 553/Ind of 1985 before the Tribunal. The Income-tax Officer also filed an appeal before the Tribunal registered as I. T. A. No. 488/Ind of 1989. Both these appeals were dismissed by the Tribunal by common order dated April 10, 1990 (annexure "D"). The applicant then filed application under Section 256(1) of the Act which was registered as R. A. No. 134/Ind of 1990. The application was rejected on November 21, 1990. The applicant then filed the present application.

(3.) WE have read the order. As we are making a direction to state the case and refer one question out of the two questions, as one of law, for our consideration and opinion, we do not deem it proper to express any opinion on the merits of the matter. If on hearing the reference at a later stage it is found that the finding is based on no evidence, appropriate opinion can be recorded.