COMMISSIONER OF INCOME TAX Vs. DESHI RICE MILLS

JUDGEMENT

(1.) THIS is a petition under S. 256(2) of the IT Act, 1961 ('the Act'), for referring the following question of law along with the statement of the case for the opinion of this Court:

(2.) THE assessee is a registered firm engaged in running of rice sheller at Muktsar. For the asst. yr. 1981-82 the assessee filed its return on 22nd Oct., 1981 declaring net income of Rs. 27,240. During the assessment proceedings, the assessee submitted two trading accounts with different figures of stock. The ITO was not satisfied with the Explanation given by the assessee. On examination of the books of account, it was found by the ITO that the stock position did not tally with the stock position given by the assessee in the declared profit statement submitted to the New Bank of India. Details of the stock hypothecated with the said bank on 30th June, 1980, 30th Sept., 1980, 31st Dec., 1980 and 31st March, 1981 were obtained. Since there was a discrepancy between the stocks as per the books of account and as per the statement given to the Bank, the ITO made addition of Rs. 4,23,367 under S. 69 of the Act vide assessment order dt. 4th Sept., 1984.

(3.) THE Revenue being dissatisfied with the order of the CIT (A) filed an appeal before the Tribunal, Amritsar Bench, Amristar, which was later on transferred to the Tribunal, Chandigarh Bench, Chandigarh, the Tribunal dismissed the appeal filed by the Revenue vide its order dt. 9th Jan., 1990. Application filed by the Revenue under S. 256(1) requesting the Tribunal to draw up a statement of the case and refer the question of law claimed by the Revenue to this Court was also declined.