R.K.AGRAWAL, J. - (1.) THE Income Tax Appellate Tribunal has referred the following questions of law under Section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court: 1. Whether on the facts and in the circumstances of the case, the Tribunal was legally justified that the production of stock register at the time of hearing of appeal constituted an additional evidence ?
(2.) WHETHER on the facts and in the circumstances of the case, the Tribunal was legally justified to sustain the ad hoc addition of Rs. 13,000/ - in the trading account without recording a finding of rejection of books of account? 2. The reference relates to the Assessment Year 1 982 -83. Briefly stated, the facts giving rise to the present reference are as follow: The assessee is a registered firm and carried on the business of sale of tin sheets only for the assessment year as alleged by it. It disclosed a returned income of Rs. 38,601/ -. The gross profit shown was 4,2%. The Income Tax Officer while framing the assessment order considered the gross profit rate as low and on the basis of a comparable case of M/s United Trading Company as mentioned in the assessment order and also on the ground that no stock register was maintained, made an ad hoc addition of Rs. 15,000/ - in the wading account and further made a disallowance of Rs. 2,000/ - out of travelling expenses and Rs. 1,000/ - out of other expenses. The assessee, being aggrieved, filed appeal before the Appellate Assistant Commissioner, Lucknow. The Appellate Assistant Commissioner sustained the addition of Rs. 15,000/ - and also other disallowances and dismissed the appeal. The assessee. being aggrieved, preferred appeal before the Tribunal. The Tribunal reduced the addition of Rs. 15,000/ - to Rs. 13,000/ - and sustained the disallowance of Rs. 2,000/ - out of travelling expenses on account of personal expenses and deleted the disallowance of Rs. 1,000/ - towards other miscellaneous expenses.
(3.) WE have heard Sri Pawansri Agrawal, learned Counsel for the applicant, and Sri Shambhoo Chopra, learned Standing Counsel appearing for the Revenue.;