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of <h1>Tribunal Upholds Commissioner's Order Dismissing Revenue's Appeal on Lack of Control Over Sale Price</h1> <h3>Commissioner Of Income-Tax Versus Ram Narain Hira Lal</h3> The Income-tax Appellate Tribunal upheld the Commissioner of Income-tax's order, dismissing the Revenue's appeal despite lack of control over sale price ... Addition To Income, Question Of Law Issues:1. Whether the Income-tax Appellate Tribunal was justified in upholding the order of the Commissioner of Income-tax and dismissing the appeal filed by the Revenue despite lack of control over sale price and unverifiable sales.2. Whether the Income-tax Appellate Tribunal was justified in dismissing the Revenue's appeal despite precedent cases and specific estimates applied.Analysis:Issue 1:The case involved the assessment year 1975-76 where the assessee, a country liquor contractor with 31 liquor shops, initially declared a loss of Rs. 2,42,589. The Income-tax Officer estimated sales at Rs. 49,72,000 with a net profit rate of 9%, based on a previous Tribunal decision. The Commissioner of Income-tax (Appeals) directed a fresh assessment considering evidence produced. The Income-tax Appellate Tribunal deleted additions made to the income, directing acceptance of the book version. The Revenue's appeal was unsuccessful, leading to an application for reference to the High Court under section 256(2) of the Income-tax Act, 1961.Issue 2:The Revenue argued that the Tribunal should have followed its previous decisions in similar matters. However, the High Court noted that the Income-tax Officer had relied on a Tribunal decision without verifying it firsthand. The Court emphasized that decisions are based on their own facts, and the relevance of previous decisions must be demonstrated. The appellate authorities found the assessee's accounts to be verifiable and complete, with all sales and purchases duly certified. The Income-tax Appellate Tribunal's findings on the reasonableness of expenses claimed by the assessee were upheld, and the assessment was deemed fair based on the evidence presented. The Court concluded that the questions for reference did not arise from the Tribunal's order, and the application was rejected.
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