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1987 (11) TMI 40

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..... oner of Income-tax for asking the Tribunal to state the case on the following questions: 1. Whether the Income-tax Appellate Tribunal was legally correct in confirming the order of the Commissioner of Income-tax (Appeals) deleting the addition of Rs. 1,68,410 despite the fact that the appeal of the assessee was earlier dismissed by the Income-tax Appellate Tribunal ? 2. Whether the Tribunal .....

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..... e of the goods and was thus wrong to place the onus of proof or to ask the Department to produce material in rebuttal?" The brief facts are that the assessee availed of overdraft facility from the State Bank of India, Bulandshahr, where the head office of the assessee engaged in the business of manufacture and sale of stainless steel utensils and water handpumps is situated. To avail of the ove .....

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..... utensils only at 455 kgs. both in the head office and at branch office situated in Delhi. The Income-tax Officer, therefore, drew the inference that the assessee kept the stock outside the books and assessed the income of the assessee from undisclosed sources at Rs. 1,68,410. This addition was deleted in appeal by the Commissioner of Incometax (Appeals) as well as by the Tribunal. The asses .....

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..... n the head office in hypothecating the same stock to the bank which was already sold in February, 1979, by the branch office. Regarding stainless steel sheets, the explanation was that the entire raw material of 180 kgs. sheets was damaged and, therefore, it was shown as nil in the books. But, as the overdraft facility was to be availed of, the same was hypothecated with the bank. Regarding the st .....

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..... contention of the Revenue that physical verification of the stock was made by the bank, and, therefore, there is no scope for the assessee to furnish any explanation for the stock. The findings recorded by the Tribunal on the foregoing facts are findings of fact and no question of law arises therefrom. The Commissioner of Income-tax (Appeals) and the Tribunal both accepted the explanation of th .....

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