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TMI Blog1962 (7) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for the year 1954-55 the Income-tax Officer got information that huge sums of money were remitted through postal insurance covers from the assessee's gaddi at Agartala to its purchasing centre at Calcutta and that these remittances have not been entered in the account books produced before him. On Shri Raj Mohan Saha, the managing partner of the firm, being asked to explain the reason for such omissions, he denied having made any remittances to the purchasing centre at Calcutta. The Income-tax Officer found that there were many remittances made by Raj Mohan Saha, the managing partner, himself and several others were made by Sukhan Lal Poddar and Makhan Lal Saha, both of whom were employees at the Agartala gaddi of the assessee. The payee in every case was Shri Benode Behari Saha, the manager of the purchasing centre of the firm at Burrabazar, Calcutta. The explanation given by Sri Raj Mohan Saha was not accepted and the Income- tax Officer held that the assessee firm was carrying on certain undisclosed business having a turnover of ₹ 4 lakhs. He estimated an income from such undisclosed business at 5% on the said turnover, thus estimating the income at ₹ 20,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is nothing in evidence from which the amount of the remittances could be ascertained. Further there is no material to show that the assessee was carrying on any undisclosed business, the turnover of which was ₹ 4 lakhs. Further, there is no material from which the income-tax authorities could come to the conclusion that the assessee had made a profit of five per cent. on the said turnover. It is contended that the income-tax authorities acted on suspicion and surmises and the postal records, on which the information to the department is alleged to be based, were never shown to the assessee and thus there was violation of the principles of natural justice in the investigation by the Income-tax Officer. Mr. Choudhury, who appears for the department, has contended that no question of law arises out of the Tribunal's order. The point was never taken before the Tribunal that there was no material from which it could be determined that the turnover of undisclosed business was ₹ 4 lakhs and that the profit from that turnover was five per cent., that is, ₹ 20,000. The finding of the Income-tax Officer and the Appellate Assistant Commissioner on these two facts was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stions of law and fact but not to pure questions of fact. Inferences from facts may themselves be inferences of fact and not of law, and such inferences are not open to review by the court.... Inference from facts would be a question of fact or of law according as the point for determination is one of pure fact or mixed question of law and fact. The position that emerges on the authorities may thus be summed up: (1) When the point for determination is a pure question of law such as construction of a statute or document of title, the decision of the Tribunal is open to reference to the court under section 66(1). (2) When the point for determination is a mixed question of law and fact, while the finding of the Tribunal on the facts found is final its decision as to the legal effect of those findings is a question of law which can be reviewed by the court. (3) A finding on a question of fact is open to attack under section 66(1) as erroneous in law when there is no evidence to support it or if it is perverse. (4) When the finding is one of fact, the fact that it is itself an inference from other basic facts will not alter its character as one of fact. The same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of the order of the Tribunal as follows: (1) When a question is raised before the Appellate Tribunal and is dealt with by it, it is clearly one arising out of its order. (2) When a question of law is raised before the Tribunal but the Tribunal fails to deal with it, it must be deemed to have been dealt with by it, and is, therefore, one arising out of its order. (3) When a question is not raised before the Tribunal but the Tribunal deals with it, that will also be a question arising out of its order. (4) When a question of law is neither raised before the Tribunal nor considered by it, it will not be a question arising out of its order notwithstanding that it may arise on the findings given by it. The question referred for opinion requires that this court should go into the question as to whether the circumstances and the materials justify the addition of ₹ 20,000 representing the undisclosed income of the assessee firm and it cannot be said that the question does not arise out of the order. From the perusal of the orders of the Tribunal, the Income-tax Officer and the Appellate Assistant Commissioner it will be clear that the point raised before the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the assessment order that he detected various amounts of cash remittances which were not passed through the books of accounts produced before him. The Income-tax Officer's detection of such omission of cash relating in each of the years amounts to about four lakhs. The Income-tax Officer instead of treating the entire sum of four lakhs has estimated profits only at five per cent., viz., ₹ 20,000, although the assessment order does not give any indication as to how the entire sum of ₹ 4 lakhs has been arrived at. These observations go to show that the Appellate Assistant Commissioner accepted the figure of ₹ 20,000 arrived at by the Income-tax Officer, firstly, on the ground that the Income- tax Officer appears to be in possession of materials from which he could come to the conclusion that various amounts of remittances have been received by the Calcutta branch of the assessee from Agartala which have not been accounted for, although he himself was of opinion that there was no indication in the order to show how the sum of ₹ 4 lakhs had been arrived at; and, secondly, on the ground that the profit of five per cent. on a total turnover of ₹ 4 lak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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