Commissioner of Income Tax vs Ratra Consultants and Contractors (P.) Ltd.

A.M. Sapre, J.—This is an appeal filed by the Revenue (Income Tax Department) u/s 260A of the income tax Act against an order, dated 26-3-2004, passed by ITAT in ITA No. 66/Ind./98. In short, the question that arises for consideration in this appeal is, whether this appeal involves any substantial question of law as is required to be made out u/s 260A of the Act that being the pre-requisite for admission of appeal.

Heard Shri R.L. Jain, learned counsel for the appellant and Shri J.K. Jain, learned counsel for respondent.

Having heard learned counsel for the appellant and having perused record of the case, we are of the view that this appeal has no merit, as it does not involve any substantial question of law.

The question involved in the case out of which this appeal arises relates to certain additions due to alleged excess consumption of raw material and consequent difference in stock of building material and payment of labour charges. It is essentially this issue which was gone into on fact by the Assessing Officer, CIT (Appeal) and eventually by ITAT (Tribunal) and then accepting the explanation offered by the assessee the addition made by Assessing Officer came to be deleted.

Mere perusal of the impugned order would indicate that it is based on facts and does not involve any issue of law much less substantial question of law. The question of addition was due to certain factual reasons to which assessee replied. The explanation offered by the assessee found favour to Tribunal and hence, the additions made were deleted. This Court now while hearing the appeal u/s 260A cannot examine as to whether explanation offered by assessee on facts should have been accepted or not, and if so, why and why not ? It is essentially for the CIT (Appeal) and Tribunal to go into the factual aspect as also the legal aspect involved in appeal and then decides the appeal. However, so far as High Court is concerned, it can only go into the issue relating to law and that too if it involves any substantial question of law. No such issue was involved in the case.

We have carefully gone through the order impugned and we fully concur with the factual finding so recorded by the Tribunal. Appeal thus fails and is dismissed in limine as involving no substantial question of law.

No costs.