9911796707
TMI Blog1985 (10) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... with details of the securities pledged with them to secure the overdrafts. As per the certificates, it was disclosed that on March 31, 1971, the following stocks stood pledged with the two banks : --------------------------------------------------------------------------------------------------------------------------------------------- S. No. Name of the bank Particulars of the stock pledged --------------------------------------------------------------------------------------------------------------------------------------------- 1. Allahabad bank 185.3 tons of pig iron 41 slabs of tin 2. Punjab National Bank 31 slabs of copper. -------------------------------------------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slabs. The statement of the proprietor of the assessee concern was recorded. The assessee also filed a reply through his counsel in response to the notice issued by the Income-tax Officer. The stand taken therein was that the assessee did not make any purchase of tin in financial year 1970-71 and that tin weighing m.t. 1,991, 43 pieces/ingots were purchased from M/s. Nyal Chand Moti Chand Co. P.B. No. 114, 101, King Street, Penang (Malaya) vide Bill No. 221/69, dated October 3, 1969, which were received on November 27, 1969, and were consumed on March 24, 1970, the receipt and consumption of which are reflected in the stock register for the financial year 1969-70. When the tin ingots are shown to have been pledged with Allahabad Bank, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner in regard to the addition of value of 31 copper slabs and ordered an addition of Rs. 45,880 instead of Rs. 10,000. In doing so, the following finding was recorded. "The assessee's counsel urges that its registers conclusively prove that the manufacture done up to March 31, 1971, included this stock, namely, 31 copper slabs and without them, so much manufacture would not have been done. From this circumstantial evidence, the assessee wants us to believe its case, No positive evidence has been furnished to show that the 31 copper slabs pledged with the bank on February 26, 1971, were really taken in the month of March, 1971. In the absence of positive evidence, it is difficult for us to hold that the pledged goods were released to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led for issuing mandamus. After considering the matter, we are of the view that the second proposed question does not arise because the matter has been decided in favour of the Department, and it was for the assessee to have sought a reference. Since the assessee has not raised any grievance, the second question does not arise for consideration. As regards the first question, we are of the view that a question of law does arise which would be apparent from the following facts. The case of the assessee was that 43 tin ingots were pledged with the Allahabad Bank on November 27, 1969, and they were received back from the bank on December 12, 1969, and were consumed in entirety before March 31, 1970, in the manufacturing process. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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