AMBA RICE MILLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) DELAY condoned. Heard on the merits.

(2.) THE assessee has preferred this appeal under s. 260A of the IT Act, 1961 (in short, "the Act") against the order of the 1997 -98, proposing to raise the following questions of law : "(i) Whether the order of the Tribunal is perverse in upholding the addition on account of valuation of closing stock without appreciating the evidence in the form of comparative results of other mill owners and the sale bills of immediately succeeding year which evidence remains unrebutted ? (ii) Whether the Tribunal was justified in upholding the additions on account of valuation of closing stock without any finding of sales and purchase outside books of account -

(3.) THE assessee derives income from running of rice mill. The return of the assessee was taken up in scrutiny and finding certain discrepancies, the AO made addition. The CIT(A), however, deleted the addition. On further appeal by the Revenue, the view taken by the AO was restored by reiterating the discrepancies which were noticed by the AO. As regards yield, the Tribunal observed that proper records with regard to production and generation of final product were not maintained. The entries were made on estimated basis. The records maintained were, thus, not complete from which the correct income could be derived. The assessment of the yield by the AO was found to be justified.