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Issues:
1. Justification of the Income-tax Appellate Tribunal's decision on the yield of mustard oil. 2. Admission of additional evidence by the Income-tax Appellate Tribunal. 3. Deletion of addition on account of concealed sales of cotton seeds oil and cake. 4. Finding on undervaluation of closing stock. 5. Deletion of disallowance on expenditure on stores and spares. 6. Deletion of disallowance of interest on interest-free advance to sister concern. Analysis: Issue 1: The Tribunal reduced the estimated yield of mustard oil from 36% to 35% and deleted the addition on interest-free loan. The High Court found that the percentage yield determination is a matter of appreciation of evidence by the assessing authority. The court held that it falls within the realm of estimating evidence, and there is room for some estimation in such cases. The court concluded that no question of law arises in determining the reasonable percentage yield of mustard oil. Issue 2: Regarding the admission of additional evidence, the High Court noted that the Tribunal had the jurisdiction to allow additional evidence. The court emphasized that whether the Tribunal decides the matter on merits after admitting additional evidence or remands the case for reappreciation is a matter of discretion of the appellate forum. It was held that this does not give rise to any question of law, and the Tribunal's exercise of discretion is not a legal mandate. Issue 3: The Tribunal deleted the addition on concealed sales of cotton seeds oil and cake. The High Court analyzed that this decision was based on the facts presented before the Tribunal. The court found that the decision to delete the addition was not perverse and was in line with the facts presented, hence not raising any question of law. Issue 4: Regarding the undervaluation of closing stock, the Tribunal's finding was that it was covered by a separate addition. The High Court observed that this finding was based on the valuation rate and not the quantity of stock. The court held that this decision was not unreasonable and did not give rise to any question of law. Issue 5: The Tribunal deleted the disallowance on expenditure on stores and spares. The High Court examined that this decision was based on the facts presented, particularly the diversion of stores and spares material to the sister concern. The court concluded that this decision did not raise any question of law. Issue 6: The Tribunal deleted the disallowance of interest on the interest-free advance to the sister concern. The High Court analyzed that this decision was based on the justification provided by the assessee for advancing the interest-free loan. The court held that this was a question of fact and not governed by any statutory provision, concluding that no question of law arose from this decision. In conclusion, the High Court dismissed the application under section 256(2) of the Income-tax Act, 1961, as it found that none of the controversies raised in the case gave rise to any issue of law requiring consideration by the court.
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