1986 (4) TMI 35

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..... Income-tax Act is applicable in the case of the assessee. 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in making the addition of Rs. 30,000 in trading account and also sustaining the addition of Rs. 7,202 on account of the alleged sale and a further addition of Rs. 1,296 as profit thereon. 3. Whether, on the facts and in the circumstances of the case, there was any material on record to disbelieve the sworn statement of Abdul Wahab and to hold that the alleged approval memo issued to Abdul Wahab constitutes the suppressed sales and whether the Tribunal was justified in upholding the addition of Rs. 7,202 the value and further in the approval memo sum of Rs. 1,296 as asses .....

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..... cturing rough cut imports into ghat, there was wastage which has been clearly accounted for in the account books of the assessee. It has thus been submitted that there was no question of any tal being shown in the process of rough cut sapphire when converted into ghat. We see no force in this contention. Even if for argument's sake, it may be assumed that there was no existence or formation of any tal during the process of manufacturing of rough sapphire into ghat, it was the duty of the assessee to maintain an account of tal also in the account books. Learned counsel for the assessee tried to explain that tal comes into existence when big pieces of rough sapphire are broken into small pieces for preparing ghat and such small pieces which .....

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..... learned counsel for the assessee in this regard is that from the sworn statement of Abdul Wahab, it was clearly proved that the assessee had no connection with the articles mentioned in annexure G. The question whether to believe the statement of Abdul Wahab or not is purely a question of fact and if the Tribunal did not believe such evidence and held that the assessee had not discharged the burden of proving that the goods contained in annexure G did not belong to the asses see, that finding is purely a question of fact. In view of these circumstances, no question of law arises out of the order of the Tribunal so as to give any direction for stating the case or referring any question of law for the opinion of this court. In the result, th .....

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