- (1.) THESE two appeals have been filed by the Revenue against the judgment of the Tribunal dt. 25th June, 2002 said to have been received by the Revenue on 9th July, 2002. Appeal No. 11 of 2003 was admitted vide order dt. 17th July, 2003 by formulating the following two substantial questions of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in upholding the action of the CIT(A) in deleting the addition of Rs. 3,46,879 made by the AO on account of undervaluation of closing stock? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that investment in the purchase of stock in trade required for the business not recorded in the regular books, and as appearing in seized diary, pertains to asst. yr. 1988 -89 and not to 1987 -88? While Appeal No. 13 of 2003 was admitted on 27th Feb., 2003 without framing any substantial question of law.
(2.) THE matters were argued with the understanding that both the appeals involve the substantial question of law No. 2 framed in Appeal No. 11 of 2003 only, while the Appeal No. 11 of 2003 involves the other question as well. The brief facts of the case are that the assessment was made by the AO, for two assessment years, being asst. yr. 1987 -88 and asst. yr. 1988 -89. Against these assessment orders, appeals were filed, and the learned CIT(A), partly allowed the appeals. Then the matter was carried to Tribunal by both the parties, inasmuch as, the assessee filed appeals being Appeal Nos. 2606/1994 and 2607/1994, while two appeals were filed by the Revenue being Appeal Nos. 2733/1994 and 2734/1994. All the four appeals were decided together by the learned Tribunal by the impugned judgment.
(3.) THE learned Tribunal while deciding the question No. 1 framed in Appeal No. 11 of 2003, relating to the deletion of addition of Rs. 3,46,879, came to the conclusion relying upon the judgment of Hon'ble the Supreme Court in CIT v. British Paints India Ltd. : [1991]188ITR44(SC) , concurred with the conclusions of CIT(A) and maintained the deletion of the addition.;