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TMI Blog2005 (9) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... y reasons as to why the order of the Commissioner of Income-tax (Appeals) was incorrect in any manner whatsoever and in the absence of the Tribunal having dealt with the reasons given by the Commissioner (Appeals), the Tribunal could not have reversed the findings recorded by the Commissioner of Income-tax (Appeals) so as to grant relief to the assessee concerned. In support of the proposition, he has placed reliance on a decision of this court rendered in the case of Rajesh Babubhai Damania v. CIT [2001] 251 ITR 541. Admit. The following substantial question of law arises for determination. "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in not dealing with the reasons ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat paragraph No. 3 of the Tribunal's order reproduces the facts and the conclusion as recorded by the Assessing Officer. The last line of the said order states, "The Commissioner of Income-tax (Appeals) confirmed the action of the Assessing Officer." Thereafter, in paragraph No. 9, the submissions made on behalf of the assessee have been reproduced and the last portion of the said paragraph reproduces the contentions raised on behalf of the department. As already noticed hereinbefore, paragraph No. 5 of the impugned order goes on to delete the addition on the basis of the total income declared by the assessee, the turnover and the rate of gross profit without there being a single sentence to even suggest as to how and in what manner the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer's reliance on that cannot be called unjustified. The information relied upon was in the knowledge of the assessee who was duly asked to reconcile the excess of stock. It is not, therefore, correct to say that information collected from excise Department was not confronted to the assessee. The excise authorities had gone into complete version of the assessee and only then have rejected the same. Reliance on that information and findings of the excise authorities cannot be termed improper. When stock is found in excess, onus can hardly be put on the revenue to prove that out of books purchases were made. This is an implied proposition which hardly needs further evidence. Mere fact that assessee's appeal is pending before the excise Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock in certain lots found by the excise authorities, the assessee has stated that the sale of these goods are included in his books of account. This quantitative details furnished by the assessee are complete. I agree with the assessee that though the goods were not found in the factory during the search, the sales of these goods are entered in the books." Thus, the so-called shortage was in fact relatable to sales of goods which had already been entered in the regular books of account maintained by the assessee. This aspect itself ought to have given an indication to the Tribunal that when the assessee is in a position to explain the discrepancies as to so-called shortage, the assessee must be called upon to explain the so-called excess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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