TaxTMI 
TaxTMI 
2008 (9) TMI 516
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....n the appeal filed by the Revenue before the Tribunal. 2. The appellant-Revenue has proposed the following questions in respective appeals. Tax Appeal No. 438 of 2008 (A) Whether the Appellate Tribunal has correctly appreciated the facts on record so as to direct the Assessing Officer to compute the unaccounted income in respect of underinvoicing on the figure of Rs.68,72,970 at the rate of 36.41 percent. of the sales to outsiders, when the Assessing Officer had estimated the underinvoicing at the rate of 50percent. of the sales to outsiders after taking into account the seized material ? (B) Whether the Appellate Tribunal has correctly appreciated the facts on record so as to direct the Assessing Officer to allow the entire claim o....
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....thout taking note of the production process and the wastage ? (D) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) deleting the addition made in respect of the unaccounted sales amounting to Rs. 7,31,602. (E) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) deleting the addition of Rs. 12,86,242 made in respect of the unaccounted cash ? 3. The assessment year in question is 1991-92. 4. Heard the learned senior standing counsel for the appellant. It was submitted that the Tribunal has committed an error in disturbing the order made by the Assessing Officer by makin....
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....es which were underinvoiced. Both, the assessee and the Revenue, carried the matter in appeal before the Tribunal. The Tribunal sustained the figure of unaccounted sales at Rs.68,72.970, but adopted a rate of underinvoicing at 36.41 percent. For this purpose, the Tribunal has recorded the following findings : "Coming to the issue whether the underinvoicing should be taken at 20 percent. of the actual turnover as accepted by Shri K. L. Thakur in this statement recorded under section 132(4) or should be taken at 50 percent., we have gone through the material as relied on before us. We find that the Assessing Officer has given instances for the underinvoicing at 34 percent., 66 percent. and 80 percent. in three instances. The assessee poin....
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....nd No. 1 of the Revenue' s appeal are disposed of accordingly." 8. Thus, it is apparent that the entire controversy has been resolved on the basis of the facts and evidence on record. As to what should be the percentage adopted in a given set of facts of a case is a question of fact and it is not possible to accept the contention of the Revenue that the impugned finding of the Tribunal gives rise to a question of law, much less a substantial question of law. 9. The second issue relates to deduction of unaccounted expenditure amounting to Rs. 8,39,836 claimed by the assessee. The Assessing Officer allowed deduction at a sum of Rs. 3,50,184 on the basis of unaccounted expenditure incurred for 130 days from October 13, 1990 to February 19,....
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....the finding of fact. Hence, no question of law, much less a substantial question of law can be said to arise out of the order of the Tribunal on this count. In so far as the third question is concerned, on the basis of common inventory of the assessee and two other concerns, the Assessing Officer worked out the discrepancy in stock, as under : Marble block (deficit) 0.897 cu. mtrs. Rs. 3,050 Marble slab (deficit) 758.139 sq. mtrs. Rs. 2,65,348 Marble tiles (surplus) 918.273 sq. mtrs. Rs. 1,51,575 14. The Assessing Officer made an addition of Rs. 4.19,913 by stating that the discrepancy could not be reconciled. 15. When the assessee carried the matter in appeal before the Commissioner (Appeals), it was accepted by the assessee....