Trading addition under income-tax law upheld after Tribunal's factual assessment found no perversity or legal error.

Books were rejected in a liquor business assessment for lack of verifiable sale vouchers and supporting expense records, leading to trading additions under section 145(2) of the Income-tax Act, 1961. The Tribunal reviewed the evidence, considered the prior year's addition in the assessee's own case, and reduced the addition to Rs. 2 lakhs. The High Court found no perversity or legal error in that factual appreciation and held that no substantial question of law arose in the Revenue's appeal.

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Issues: Whether the Tribunal was justified in reducing the trading addition made under section 145(2) of the Income-tax Act, 1961, and whether any substantial question of law arose in the Revenue's appeal.

Analysis: The Assessing Officer had rejected the books for want of verifiable sale vouchers and support for expenses and had made additions in the assessee's liquor business. The Tribunal examined the record, considered the rival contentions, and reduced the addition to Rs. 2 lakhs, taking into account the facts and the addition made in the preceding year in the assessee's own case. No perversity or legal error was shown in the Tribunal's appreciation of the evidence.

Conclusion: The Tribunal's reduction of the addition was upheld and no substantial question of law arose. The appeal was dismissed.

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