1982 (2) TMI 9

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....ribunal are sustainable? " This reference was made as directed by this court under s. 256(2) of the I.T. Act, 1961, by order dated 7th December, 1979, in M.C.C. No. 77 of 1975. The relevant assessment year is 1964-65. The assessee is assessed in the status of HUF. The assessee carried on business of coal mining in the district of Chhindwara in Madhya Pradesh. During the relevant previous year, the assessee worked two collieries, namely, Ghorawari Hirdagarh and West & East Burkuhi. These collieries belonged to M/s. J. A. Trivedi Brothers, a registered firm. The collieries were worked by the petitioner under a general agreement. The books of the, assessee were rejected under s. 145(2) of the Act and a best judgment assessment was made i....

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....ions Rules, 1960. Annual and monthly returns have also to be submitted in accordance with reglns. 4 and 5 of the Coal Mines Regulations, 1957. The returns are to be submitted in Forms II and III. The coal produced in the collieries was despatched by rail. That itself is a check against manipulation of accounts. The Tribunal did not consider the argument of the assessee that the statements and returns submitted by the assessee were checked by governmental authorities under the aforesaid rules and regulations and, therefore, the accounts maintained by the assessee could not be rejected. In our opinion, this was an important factor to be taken into account. Further, the Tribunal committed the error of taking non-existent fact into consideratio....