2004 (11) TMI 63

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...., 1997, passed in I. T. A. No. 5276/Del/1991 for the assessment year 1987-88. "1. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was right in law in deleting the addition of Rs. 5,000 made on account of shortage of cloth measuring 461.80 metres? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in deleting the addition of Rs. 1,42,421 made on account of disallowing the checking charges by ignoring the evidence brought on record?" The assessee is a private limited company dealing in wholesale trading of cloth. The respondent filed its return of income on June 29, 1987, declaring an income of Rs. 1,66,000. The Assess....

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....ound to be short. The Revenue had not set up a case that the assessee had sold the stock outside the books of account. The Tribunal had recorded that there has been no dishonest intention on the part of the assessee in claiming shortage of cloth measuring 461.80 metres. In view of the said finding, no question of law, as claimed by the Revenue, arises for the opinion of this court. Accordingly question No. 1 is declined. Now taking up question No. 2, it needs to be mentioned that the Tribunal based its decision on the following facts as noticed in its order: "(i) Checking charges are to the account of the assessee. Nothing to show that they increase cost in the hands of the purchasers. (ii) Clause 3 of commonly worded agreement ....

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....ntity rejected and shortages, etc. This could not have been possible in case the assessee had not carried out the process of checking, etc., by engaging persons to do so." The decision of the Tribunal, holding the expenses for checking of material to be genuine, is based on appreciation of evidence and no perversity could be pointed out by the Revenue in the finding recorded by the Tribunal. Learned counsel for the Revenue by making reference to certain material on record has made a vigorous effort to persuade this court to arrive at a conclusion contrary to the conclusion arrived at by the Tribunal. We are afraid that it is not within the domain of this court to reappreciate the evidence while dealing with the petition under section ....