2001 (11) TMI 14 - HC - Income Tax

High Court dismisses appeal challenging ITAT order on inflated stock statement.

Commissioner of Income-Tax Versus Relaxo Footwear.

The High Court of Rajasthan dismissed an appeal challenging the Income-tax Appellate Tribunal's order under section 260A of the Income-tax Act, 1961. The ... 'Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal is justified in holding that the stock statement submitted to the bank cannot be considered an authentic piece of evidence for making addition and thereby deleting the additions made for undisclosed investment in stock as well as consequential effect of sale?' The facts clearly show that the Tribunal on appreciation of evidence including the result of investigation and details contained in the form of statement of stock submitted to the bank, has reached a definite finding that the statement to the bank was a motivated one and it did not reflected the true position of the stock position but was rightly reflected in the books of account. - In that view of the matter, the finding reached by the Tribunal is a finding of fact which does not give rise to a question of law. The High Court of Rajasthan dismissed an appeal under section 260A of the Income-tax Act, 1961, challenging the order of the Income-tax Appellate Tribunal. The case involved discrepancies in the stock statement submitted to the bank by the assessee, who inflated the stock position to avail of higher credit. The Tribunal found the statement to the bank was motivated and not reflective of the true stock position, leading to the deletion of additions made by the assessing authority. The Tribunal's decision was based on factual findings and did not raise a question of law, resulting in the dismissal of the appeal.