- (1.) THE appeal was admitted on 15th Oct., 2001. The substantial question of law that arises for consideration of this appeal were not framed at the time of admission. The assessee appellant in his memo of appeal has raised following questions as substantial questions of law: 1. Whether the learned Tribunal was justified in upholding the addition of Rs. 32,000 in the hands of the assessee for the asst. yr. 1991 -92 which represented the cash credits taken by the assessee from one Sri Ramulal and Shri Devendra Sankhla ?
(2.) WHETHER , the learned Tribunal was justified in upholding of addition to the extent of 1/4th of depreciation and Rs. 1,000 on account of expenditure on books and periodicals ? Question Nos. 3 and 4 referred to an amount in appeal are general and does not relate to any specific subject -matter. 2. So far as question No. 2 is concerned we find that the AO has considered the claim of the assessee for allowing as deduction the expenses incurred by him on purchase of books, periodicals and stationery for the purposes of his business. However, the AO found when inquired to verify the purchases of these items the assessee was unable to produce any material either in the form of vouchers or otherwise to support this claim. In the circumstances, the AO disallowed the claim of Rs. 2,500 out of Rs. 4,500 claimed as deduction on this count. On appeal the CIT(A) sustained the disallowance but on further appeal the Tribunal sustained the disallowance only to the extent of Rs. 1,000.
(3.) SINCE it is a case in which the verification of explanation of expenses actually incurred was not available and the disallowance of the claim led by the assessee was made on the estimated basis because of the want of relevant material to sustain actual expenditure incurred on aforesaid items, in our opinion it does not give to any question of law much less substantial questions of law. In the absence of verification of material expenses claimed as deduction as expenses actually incurred or laid out wholly and exclusively for the purposes of assessee, the reasonable estimation is permissible in law and (some) guesswork is inherently invoked in such estimation. Hence the extent to which claim of the assessee has been sustained remains ordinarily a finding of fact. In the facts and circumstances where in the absence of proper material if the AO has resorted to estimate and on estimated basis the Tribunal has sustained the certain amount of claim only, it cannot be said to be that disallowance of the claim is founded on no material or irrelevant consideration. Therefore, the finding on that account does not call for interference.;