Income enhancement in assessee's appeal, reliance on sales tax findings, and no referable question of law found.

Appellate authorities may enhance income even in an assessee's appeal where the enhancement relates to the same head of income. After rejection of account books, income-tax authorities may rely on a Sales Tax Tribunal's sales estimate when making their own assessment, and the adequacy of that evidence is not ordinarily open to interference in reference. Inferences said to arise from a later survey were treated as not truly arising on the record, because the material considered related to the relevant assessment year. No referable question of law was found, and the application was dismissed.

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Issues: (i) Whether the appellate authority had power to enhance the income in an appeal by the assessee. (ii) Whether the Tribunal was justified in adopting the sales estimate made by the Sales Tax Tribunal without independent inquiry by the income-tax authorities. (iii) Whether inferences drawn in sales tax proceedings on the basis of a subsequent survey were relevant and conclusive for income-tax proceedings.

Issue (i): Whether the appellate authority had power to enhance the income in an appeal by the assessee.

Analysis: The appellate authority's power of enhancement extends to the tax or income in appeal, including an appeal preferred by the assessee, and the enhancement in the present case was made under the same head of income.

Conclusion: The power of enhancement existed and the answer was against the assessee.

Issue (ii): Whether the Tribunal was justified in adopting the sales estimate made by the Sales Tax Tribunal without independent inquiry by the income-tax authorities.

Analysis: After rejection of the assessee's account books, the assessing authority could take into account the order of the Sales Tax Appellate Tribunal while estimating income. There is no rule requiring some evidence other than that order, and the adequacy of evidence was not open to interference in the reference.

Conclusion: The Tribunal was justified in relying on the sales tax order and the answer was against the assessee.

Issue (iii): Whether inferences drawn in sales tax proceedings on the basis of a subsequent survey were relevant and conclusive for income-tax proceedings.

Analysis: The question did not really arise on the facts because, although the survey was subsequent to the assessment year, the material considered pertained to the relevant assessment year.

Conclusion: The question was declined as not arising from the record and the answer was against the assessee.

Final Conclusion: No referable question of law warranted reference, and the application was dismissed.

Ratio Decidendi: An appellate authority may enhance income in an assessee's appeal, and in reference proceedings the sufficiency of evidence or the propriety of relying on a sales tax order after rejection of account books does not, by itself, raise a question of law.

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