Stock statement to bank treated as motivated evidence, with deletion of undisclosed stock addition upheld on facts.

The Tribunal's deletion of the addition for alleged undisclosed stock investment was sustained because it found, on the evidence, that the stock statement given to the bank was inflated only to obtain higher credit facilities, while the stock remained with the assessee and the bank had no physical control. The books of account were therefore accepted as correctly reflecting the stock position. As the conclusion rested on appreciation of evidence and a pure finding of fact, no substantial question of law arose.

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Issues: Whether the Tribunal was justified in treating the stock statement furnished to the bank as a motivated statement and in deleting the addition made on account of alleged undisclosed investment in stock, and whether any substantial question of law arose from that finding.

Analysis: The Tribunal had examined the books of account, the stock statement given to the bank, and the surrounding circumstances. It found that the stock remained with the assessee, there was no physical control by the bank, and the higher stock shown to the bank was intended to obtain greater credit facilities. On that appreciation of evidence, the Tribunal concluded that the statement furnished to the bank did not reflect the true stock position and that the books of account correctly showed the stock.

Conclusion: The finding was one of fact based on evidence and did not give rise to any substantial question of law. The deletion of the addition was upheld.

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