RAJAGOPALAN, J. - (1.) THE question referred to this Court was : "Whether on the facts and circumstances of this case, there is any material to support the estimate of the excess receipt of Rs. 42,000, by the assessee on the sale of onions."
(2.) THE assessee had his headquarters at Tuticorin. He had a branch at Colombo in Ceylon. The assessee used to export onions of his own to his branch at Colombo for sale there. The assessee also used to export onions belonging to others for sale at his Colombo branch on a commission basis. One of those for whom he exported onions in the year of account was his son in -law, Sethuramalingam Pillai, who had his shop in Tinnevelly and who traded under the vilasam of V. A. S. Arumugham Chettiar and Sons. During the year of account, the assessee sold to the Ceylon Government through his branch at Colombo 4,699 cwts. of onion. That these were sold at the controlled rates was not in dispute. During the year of account the assessee also sold in the open market 3,746 cwts. He claimed to have sold the goods in the open market also at the controlled rates and showed the total receipts on that basis.
(3.) THE ITO was of the view that the assessee must have sold his goods in the open market at rates higher than the controlled rates, and he added a sum of Rs. 42,000 to the gross receipt disclosed by the assessee in his books. That was confirmed on appeal by the Asstt. CIT and on further appeal, by the Tribunal.;