9911796707
TMI Blog1972 (11) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... s delivered by JOSHI J.-This is an application under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as " the Act ") on behalf of the Additional Commissioner of Income-tax, Rajasthan, Jaipur, praying that the Appellate Tribunal be directed to state the case and refer a question of law arising therefrom. Facts which are necessary for the disposal of this case may be stated in brief. Messrs. Bhanwarlal Sohanlal, the assessee, is a partnership firm registered under the Indian Partnership Act. The assessee is a dealer in various grains. It filed return of income for the assessment year. Along with its return a summarised trading account was also filed. According to the statement of trading account, the assessee, claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation to add the sale price of unshown quantities of the sale without allowing the shortage on such quantities of the grains. Learned counsel for the assessee also placed before the Tribunal, a notification issued by the co-operative department of the Government of Rajasthan showing the maximum permissible percentage of losses in weight due to driage and shortage, etc., on account of storage for the period ranging between two months to twelve months. After considering the notification and materials on the record the Tribunal came to hold that it would be fair and reasonable to allow shortage at the rate of 2.5% in respect of maize, 1.2% and 2.65% in respect of gram and jowar, respectively. Accordingly, the Tribunal restricted the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in his books of account and, therefore, it was not open to the Tribunal to allow additional shortage by placing reliance upon the notification of the Rajasthan Government prescribing the maximum shortage on account of storage, handling, etc. It is not disputed that whether there was a shortage in weight of particular grains on account of handling, storage, driage, etc., is a pure question of fact, but the grievance of the department is that there is not an iota of evidence to sustain the finding of the Tribunal. In order to examine the contention of the learned counsel we deem it proper to notice a few cases bearing on the point. In Sree Meenakshi Mills Ltd. v. Commissioner of Income-tax it has been held that " finding on a question of pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion asked for. The books of account of the assessee admittedly did not record the correct and faithful quantities of various grains purchased by the assessee. Even the learned counsel for the department had impeached the veracity of the account books of the assessee. The Tribunal while dealing with the reliability of the account books have observed as follows : " The assessee has no doubt followed a highly unconventional method of recording those shortages. As pointed out earlier, the proper method of recording the shortage would have been to show it in the trading account after recording the quantities of opening stock and purchases and sales and closing stock. But this alone should not operate to prejudice the assessee's case so as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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