1967 (11) TMI 23

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....nd 1952-53. The assessee-company worked leases of three forests, Lidder forest in Kashmir Province, and Udil and Khallor forests in Jammu Province of Jammu and Kashmir State.The leases worked for four years and the assessee-company prepared a consolidated profit and loss account for the period between May 6, 1947, and April 30, 1951, the profits having been apportioned over the years proportionately. The total extraction of timber in the case of Lidder forest was 3,15,333 often and the assessee-company accounted for 3,00,492 cft., with a balance loss of about 15,000 cft. in transport in the river, the loss working to about 5 per cent. of the extracted timber. This loss the Income-tax Officer found as normal and allowed it to the assessee....

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....pellant (assessee-company) suffered some abnormal loss. However, the quantity of loss suffered cannot correctly be ascertained either from the report of the forest department or from the accounts-books themselves. The disallowance of the abnormal shortage at 29,000 cft. is excessive. I would reduce it to 15,000 cft. meaning thereby that the price of 14,000 cft. should be added. At Rs. 6.68 P. the price of 14,000 cft. amounting to Rs. 93,520 is to be added in place of Rs. 1,93,720. In other words, a sum of Rs. 1,00,200 will be deleted. " Against the order of the Appellate Assistant Commissioner there were appeals by the assessee-company and the department to the Income-tax Appellate Tribunal, New Delhi, and the Tribunal, by its order of Nove....

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....s respect the learned counsel relies on Lalchand Bhagat Ambica Ram v. Commissioner of Income-tax, in which their Lordships held that " the Income-tax Appellate Tribunal is a fact-finding Tribunal and, if it, arrives at its own conclusions of fact after due consideration of the evidence before it, the Supreme Court will not interfere. However, the finding of the court of fact should not be vitiated by reason of its having relied upon conjectures, surmises and suspicions not supported by any evidence on record or partly upon evidence and partly upon inadmissible material. Where the fact-finding authority acts without any evidence or upon a view of the facts which cannot reasonably be entertained or the facts found are such that no person acti....