1986 (4) TMI 35

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.... on record to sustain the finding of the Tribunal that the proviso to section 145(1) of the Income-tax Act is applicable in the case of the assessee. 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in making the addition of Rs. 30,000 in trading account and also sustaining the addition of Rs. 7,202 on account of the alleged sale and a further addition of Rs. 1,296 as profit thereon. 3. Whether, on the facts and in the circumstances of the case, there was any material on record to disbelieve the sworn statement of Abdul Wahab and to hold that the alleged approval memo issued to Abdul Wahab constitutes the suppressed sales and whether the Tribunal was justified in upholding ....

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....apphire rough cut imports were issued for ghat. It is submitted that during the process of manufacturing rough cut imports into ghat, there was wastage which has been clearly accounted for in the account books of the assessee. It has thus been submitted that there was no question of any tal being shown in the process of rough cut sapphire when converted into ghat. We see no force in this contention. Even if for argument's sake, it may be assumed that there was no existence or formation of any tal during the process of manufacturing of rough sapphire into ghat, it was the duty of the assessee to maintain an account of tal also in the account books. Learned counsel for the assessee tried to explain that tal comes into existence when big pi....