9911796707
TMI Blog2000 (1) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... 98,110 towards gross profit on account of difference in the closing stock ?" The factual position, as indicated in the statement of case, is as follows : The assessee is a partnership firm which, inter alia, carried on business in timber logs, teak poles, scantlings, fire wood, fish oil, etc. For the assessment year 1984-85 corresponding to the previous year ended on March 31, 1984, the Assessing Officer added a sum of Rs. 4,98,110 to the value of the closing stock and correspondingly to the profit by holding that there was undervaluation. Such conclusion was arrived at on the basis of certain books of account seized during a search conducted under section 132 of the Act at the business and residential premises of the assessee and its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals), Calicut (in short "the CIT(A))", the assessee contended that the property mark register was maintained only for the purpose of obtaining transport permits from the forest department and it had no other significance and it could not be equated with the stock register. It was negatived by the Commissioner of Income-tax (Appeals) holding that the forest authorities had verified the stock position on April 9, 1984, and recorded the stock position as was actually existing and, therefore, the ownership of the stock, as revealed in the seized register, could not be doubted or denied. In appeal before the Tribunal, the assessee's contention was that the property mark register was only a record showing the maximum quantity of timber allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal. Learned counsel for the assessee submitted that actually there was no physical verification of stock. He placed reliance on a document, i. e., a statement purported to have been made by a forest official. A factual finding has been recorded by the Tribunal, the correctness of which cannot be decided in a reference. We do not take the document referred to above into consideration because there is no reference to it by any of the forums and not even in the statement of case drawn up by the Tribunal. This appears to be a document produced for the first time before this court. There was no dispute that the forest authorities had verified the stock and found that different quantities were actually existing. This was the accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timber of 360.224 cu. mts. should be worth Rs. 4,30,823. In these circumstances, the closing stock value has to be increased by Rs. 4,98,110 and correspondingly the profit." The Commissioner of Income-tax (Appeals) considered the matter by noticing as follows : "The appellant had stated before the Income-tax Officer that all the purchases and sales were not entered in this register which was called a property mark register maintained for the purpose of obtaining transport permits from the forest department. The explanation was that at the close of every financial year, we have to apply for the required transport permit for the estimated quantity of timber to be transported during the year. The quantity shown in the register is only an appro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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