TaxTMI 
TaxTMI 
2007 (8) TMI 312
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.... Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh (for brevity, 'the Tribunal'), in I.T.A. No. 1424/Chandi/95, in respect of the assessment year 1990-91 and I.T.A. No. 1425/Chandi/95, in respect of the assessment year 1992-93 (A-3). The assessee has claimed that following three questions of law would arise for our determination:- "(i) Whether in the facts and circumstances of the case the Tribunal is right by ignoring the fact that the assessee was dealing with the items on the whole sale basis and only a nominal profit of 4.5 per cent be applied by treating the sale as of raw material? (ii) Whether in the facts and circumstances of the case, the Tribunal is right in upholding the addition of Rs. 21,39,950/- when there is no evide....
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....gross profit rate. The Assessing Officer did not feel convinced with the explanation furnished and made addition of Rs. 12 lacs on account of low G.P. rate in comparison to the G.P. rate of the last year on estimate basis. The assessee had also shown a sum of Rs. 51,02,069/- as the claim receivable in an annexure to the balance sheet under the head 'current assets loans and advances', which the assessee claimed that it was receivable on account of theft. No copy of the FIR or the claim filed with the Insurance Company was furnished to the Assessing Officer despite various opportunities. The Assessing Officer also made direct inquiries from the Insurance Company by issuing summons under Section 131 of the Act. The United India Insurance Comp....
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....2) of the Act with effect from 1.4.1989. Such a bad debt can be considered to be written off by the assessee. The Commissioner Income Tax (Appeals) also held that the order passed by the Assessing Officer in this respect contravened the provisions of Section 36(2) of the Act. 5. On further appeal of the revenue, the Tribunal concluded by referring to the voluminous evidence in the form of reports of surveyors and investigators that no theft had been committed on the premises of the assessee in respect of the alleged stock worth Rs. 51,02,069/-. It also further concluded that the assessee have manufactured goods out of raw material worth Rs. 51,02,069/- and then sold the manufactured goods. It rejected the contention raised by the assessee ....
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....f goods manufactured and sold, required to be recomputed and addition on account of undisclosed sales of goods manufactured out of the stock of Rs. 51,02,069 also requires to be computed at the same G.P. rate as applied on the disclosed sales. In the light of these facts, we consider it fair and reasonable to set aside the order of the Commissioner Income Tax (Appeals) and direct the Assessing Officer to recompute the addition in accordance with our observations made herein above in this order after allowing reasonable opportunity to the assessee." 6. On the question as to whether the assessee is entitled to claim loss of Rs. 51,02,069/- debited as insurance claim in the profit and loss account for the assessment year 1992-93, the Tribunal....
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..... (iii) given herein above in this order, the respective grounds of appeal taken by the revenue for the asstt. year 92-93 in I.T.A. No. 1425/Chandi/95 are allowed." 7. We have heard learned counsel for the assessee at a considerable length and with his assistance have perused the orders passed by the Assessing Officer, Commissioner Income Tax (Appeals) and the Tribunal. We further find that no question of law would emerge for our determination nor any such arguments have been advanced warranting admission of the appeals. When we examine Question No. (i) as claimed by the assessee, it reveals that the same is a pure question of fact wherein it is claimed that the woolen rags worth Rs. 51,02,069/- was deemed to have been sold by applying the....