9911796707
TMI Blog1996 (4) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Commissioner of Income-tax (Appeals), which represented notings on a piece of paper titled 'Jakad' ? 2. Whether the Tribunal was justified in sustaining the addition on the basis of a piece of paper having notings of date and amount only without proving the ownership or investment in terms of section 69 or section 69A of the Income-tax Act, 1961 ? 3. Whether the Tribunal could in law presume from Jakad slip that the assessee had made investments which are not recorded in the books of account, in spite of the fact that 'Jakad' represented the goods on approval and as per practice of the trade these were not entered in books of account unless the goods are approved and transactions are finalised ? " The assessee is an individ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold to prospective buyers. However, on being called to tally the entries with the entries in the stock register, the assessee stated that no "Jakad Bahi" was maintained by him and that it was difficult for him to tally the entries in the document with those in the stock register. By his letter dated March 17, 1982, the assessee contended that no entries were made in the stock register as the goods given on "Jakad" simply represented movement of goods out of stock-in-trade. The assessee further appears to have contended before the Income-tax Officer and the Inspecting Assistant Commissioner that the first entry did not bear any date and, therefore, the same did not pertain to the accounting period under consideration. Both the assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal, the Tribunal confirmed the additions as made and sustained by the Commissioner of Income-tax (Appeals). Mr. T. C. Jain, learned counsel for the assessee, vehemently urged that the income-tax authorities as well as the Tribunal have not appreciated the facts of the case and evidence on record in the right perspective and, therefore, their findings stand vitiated. Referring to the principles enunciated in certain cases particularly in CIT v. Lakshman Swaroop Gupta and Bros. [1975] 100 ITR 222 (Raj) and CIT v. Smt. P. K. Noorjehan [1980] 123 ITR 3 (Ker). Mr. Jain submitted that no inference on the basis of the entries in the seized paper could have been made against the assessee and that no addition could be made or sustained under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law to basic findings. In fact, the issues of fact are to be decided on the basis of the appreciation of relevant facts and the evidence and other material brought on the record of the case in support of the existence or non-existence of such facts. The appreciation of such facts and evidence results in recording certain findings which would undoubtedly have the character of findings of fact. The findings of fact would give rise to questions of fact only and not to questions of law. In the instant case the question which arose for consideration and adjudication by the income-tax authorities and the Tribunal was whether any addition can be made on the basis of the entries made in the paper found in possession of the assessee. The Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roof and appreciation of evidence. There is no dispute about such principles. The question is one of applicability of the principles to the facts in a given case. It has been a well-settled view that the ratio of any decision must be understood in the background of that case. What is of essence in a decision is its ratio and not every observation found therein nor what legally follows from the various observation made in it. It is not a profitable task to extract a suitable sentence here and there from a judgment and to build upon it (vide Ambica Quarry Works v. State of Gujarat, AIR 1987 SC 1073). In our opinion, the principles enunciated in the cited cases do not render any help to the assessee in the facts and circumstances of the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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