AI Drafter 
TaxTMI 
TaxTMI 
1964 (10) TMI 5
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.... High Court refusing to grant a certificate for leave to appeal against the main order on the ground that the applications for certificates were not maintainable under article 133 of the Constitution. The second batch of appeals, viz., Civil Appeals Nos. 188 to 192 of 1964, were not pressed and, therefore, they are dismissed, but in the circumstances without costs. The facts are as follows : The Indore Malwa United Mills Ltd., the appellant, is a public limited company incorporated under the Indore Companies Act, 1914, and it has its registered office at Bombay. It is engaged in textile industry. For the assessment years 1940, 1941, 1942, 1943 and 1944, it was assessed to industrial tax under the Rules. The Assessing Officer held that th....
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...., and the Daily Yarn Production Register, which gives an inflated version of production, and came to the conclusion that the difference found between the yarn produced as shown in the Yarn Production Register and that deduced from the Sale Contract Register was not accounted for by the assessee ; this conclusion, the argument proceeded, was arrived at by ignoring the relevant evidence and relying upon irrelevant or at any rate inconclusive evidence. (2) The Sale Contract Register contains entries made even before the cotton was purchased ; the entries only represent the estimate and are made on the basis of the quality and the quantity required by the buyer, and that they invariably show lesser than the actual weight shown in the Actual Clo....
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....loth, the yarn undergoes a process of sizing which adds to the weight of the yarn, but it also involves a certain loss of yarn in the form of waste that occurs in all the departments, i. e., winding, warping, sizing, drying-in, weaving and reeling. Many imponderables, therefore, enter into the process of spinning yarn and weaving cloth which reduce the weight of the yarn that finally enters into the making of the cloth. The assessee kept various registers which give the particulars of the cotton purchased, the cotton issued for spinning into yarn, yarn produced daily, yarn sent to the reeling section and the actual weight of the cloth produced. The following registers are maintained by the assessee : (1) Cotton Purchase Register ; (2) Co....
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....y or the other on the basis of the accounts accepted by them and other relevant evidence. The tribunals in giving value to the entries in the registers, shall also consider the explanation and the reasons given by the assessee for the fluctuations found in the registers. The Assessing Officer, the Appellate Authority and the High Court only relied upon the entries in the Sale Contract Register and the Daily Yarn Production Register for the purpose of ascertaining the unexplained shortage of yarn, though they differed in the matter of giving allowances for the count deviation, etc. The Assessing Officer, in his order relating to the assessment year 1940, gives reasons for discarding the books and records of the assessee in regard to quant....
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.... the weights in the Sale Contract Register would necessarily be less than the weights given in the Actual Cloth Production Register. Being tribunals of fact, it was their duty to consider all the accounts, having regard to the arguments advanced and the explanations given by the parties, and come to their own conclusion. But as they had not done so, we think that this is a fit case to give them another opportunity to do so. The High Court remanded the matter to the Assessing Officer and directed him to give opportunity to the appellant-company to produce materials with reference to the three points mentioned in its judgment. In the aforesaid circumstances, we think that the scope of the enquiry before the Assessing Officer should not be lim....