TaxTMI 
TaxTMI 
2006 (1) TMI 84
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....micals? (2) Whether, the Appellate Tribunal is right in law in recalling the earlier order on the same facts? R.A No. 353/Ahd/1988: (1) Whether, the Appellate Tribunal is right in law in deleting the addition of Rs. 6,40,960 on account of fictitious purchases of colours and chemicals? (2) Whether, the Appellate Tribunal is right in law in recalling its earlier order on the same facts?" Both these references arise out of the appeal of the assessee and the appeal of the Revenue, respectively. The assessment year is 1977-78 and the relevant accounting period is commencing from July 1, 1975 and ending on June 30,1976. The assessee, a private limited company, is carrying on the business of bleaching, dyeing, printing and proces....
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....he assessee before the Tribunal, extract of the original order dated August 20, 1987, the order dated December 2, 1987, made on miscellaneous application and order dated December 3, 1989 rejecting the reference application have been taken on record. To complete the sequence of events it requires to be noted that while passing the order on December 2, 1987 in MA No. 78/Ahd/1987 the Tribunal recalled its order dated August 20, 1987. Thereafter, the Tribunal heard the appeals and passed a consolidated order dated February 26, 1988, dismissing the appeal of the Revenue and partly allowing the appeal of the assessee. It is this order which is under challenge. Heard Mr. B.B. Naik, learned standing counsel for the applicant. In relatio....
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....tted an error in appreciating the evidence. That the first order in point of time whereby the appeal of the Revenue had been allowed and the assessee's appeal dismissed on this ground ought to be treated to be the only subsisting order. In so far as question No. 1 is concerned, the Tribunal has taken note of the fact that the Revenue has not disputed the details of the closing stock. Therefore, the Tribunal has found, that in the facts and circumstances of the case, the existence of the raw materials purchased cannot be doubted, and if that is the situation, there could be no case for disputing the purchases. The Tribunal has further recorded that there was no material on record to conclude that in addition to the alleged fictitious purc....
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....no ground for making or sustaining any addition, in the absence of any evidence to show what was the prevailing market price. Thus, on reading the impugned order of the Tribunal as a whole, it is apparent that it is solely based on an appreciation of evidence and records finding of fact in the light of the evidence which was led before the Tribunal. In the circumstances, there is no reason to take any other view of the matter. Question No. 1 in each of the references therefore requires to be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. The position in law is well settled. Merely because the High Court has called for a reference under section 256(2) of the Act it is not necessary for the High Co....