1987 (11) TMI 68

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....HU THOMMEN J.-The following question has been, at the instance of the assessee, referred to us by the Income-tax Appellate Tribunal, Cochin Bench : " Whether, on the facts and in the circumstances of the case, and particularly in the context of the remand report of the Income-tax Officer not considered by the Tribunal, the Tribunal was justified in upholding the addition of Rs. 38,331 made by t....

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....d the Tribunal in second appeal and contended that if the customers who dealt with the assessee during the relevant period were to be examined, they would disclose that the price paid by them was not at variance with what was recorded in the books of account. This submission obviously appealed to the Tribunal as seen from its remand order dated June 28, 1980 (see annexure C). The Tribunal by that ....

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....ing the necessary inference from the basic facts available to it and in accordance with the correct principles of law. In doing so, it is not open to the Tribunal to eschew relevant material or take into account irrelevant material. The Tribunal must necessarily decide on the basis of the evidence on record and with reference to the provisions of law. That the material which was directed to be obt....

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.... The complaint of the assessee is not that the Tribunal rejected the evidence after considering the same, but that it did not consider the evidence at all. The genuineness of the complaint is fully supported by the statement of the case. Counsel for the Revenue, however, relies on the following observation of the Allahabad High Court in Laxmi Co. v. CIT [1959] 37 ITR 461, 476 : " Any observa....