1958 (3) TMI 69

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....own to his branch at Colombo for sale there. The assessee also used to export onions belonging to others for sale at his Colombo branch on a commission basis. One of those for whom he exported onions in the year of account was his son in-law, Sethuramalingam Pillai, who had his shop in Tinnevelly and who traded under the vilasam of V.A.S. Arumugham Chettiar and Sons. During the year of account, the assessee sold to the Ceylon Government through his branch at Colombo 4,699 cwts. of onion. That these were sold at the controlled rates was not in dispute. During the year of account the assessee also sold in the open market 3,746 cwts. He claimed to have sold the goods in the open market also at the controlled rates and showed the total receipt....

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....prices in Colombo, the whole of which he has suppressed." In the statement of the case what the Tribunal recorded in paragraph 11 was: "The Tribunal duly considered all the above facts and circumstances and found that, along with the other onion importers in Colombo, the assessee too had collected substantial extra prices over and above the regulated price." But this statement in paragraph 11 does not truly represent what the Tribunal recorded in paragraph 2 of its order on appeal. As we pointed out, the Assistant Commissioner left one in no doubt as to what his finding was. He recorded that sales had taken place in excess of the controlled price and that the assessee was in receipt of the excess sums. But that was certain....

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....which onions were eventually sold at Colombo. It was also in evidence that one Lakshmana Pillai represented Sethuramalingam Pillai at Ceylon. It was admitted by the assessee that Sethuramalingam Pillai consigned all his goods for sale only at the assessee's shops at Colombo and that there were no sales of Sethuramalingam Pillai outside the assessee's shop. It was further in evidence that the assessee sold those goods on commission and that the pattials that the assessees sent disclosed sales only at the controlled rates, on which basis alone commission was paid to the assessee. But there was evidence which has been sent as annexure A-2 which proved that Lakshmana Pillai sent an account of his principal Sethuramalingam Pillai, which ....

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....old to the Government and there was no difficulty about the prices realised. Some of the goods were sold in the open market and with reference to a part of those sales Lakshmana Pillai certainly admitted realisation of excess prices. Whether those realisations were made through the assessee's branch shop at Colombo there was no evidence to show. The assessee himself accounted only for sales at controlled prices. Lakshmana Pillai accounted to his principal Sethuramalingam Pillai for the excess amounts collected. Whether the excess amounts were collected by Lakshmana Pillai or whether they were collected by the branch shop of the assessee at Colombo there was no evidence to show. In this state of the evidence it is rather difficult to bas....