Case: Nawabganj Sugar Mills Company Limited &amp; Others Vs. Commissioner of Income Tax, Delhi &amp; Rajasthan

but to see whether there was evidence to support the findings recorded by the Tribunal and whether the finding could on that evidence be reasonably reached.19. We have already referred to the resolution dated July 26, 1944. The first criticism of MR. V. S. Desai is that the evidence of sub-agents appointed by the selling agent has not been considered by the Appellate Tribunal. The two witnesses in this regard are Ram Sahai Dhir and Shiv Nand Verma. The contention of Mr. V. S. Desai that the evidence of Ram Sahai Dhir that the evidence of Ram Sahai Dhir has not been considered, as such by the Appellate Tribunal, is only technically correct because it is seen from the order of the Appellate Tribunal that it has referred to the relationship between the appellants and a company known as M/s. Ramdev and Company. Ram Sahai Dhir in his evidence has clearly stated that he is the sole proprietor of M/s. Ramdev and Company. He has further stated that after he got the sub agency from M/s. Gokul Nagar Sugar Mills Co. Ltd. he along with his brother and son formed a partnership for this purpose in the name of M/s. Ramdev and Company. The Appellate Tribunal in paragraph 7 of its order has considered a telegram sent on September 1, 1948 to M/s. Ramdev and Company by the Chairman of Nawabganj Sugar Mills Co. Ltd. That telegram states that the agency of M/s. Gursarandas Kapur and sons has been terminated and M/s. Ramdev and Company is asked to sell and freely secure challans. Ram Sahai Dhir in his evidence has stated that M/s. Gursarandas Kapur and Sons were the selling agent of the appellants originally and that he started his own sugar business in or about 1947, Therefore, the telegram, as held by the Appellate Tribunal clearly shows that the appellants were having direct dealings with Ramdev and Company and that M/s. Gokul Nagar Sugar Mills Co. Ltd., is nowhere in the picture. This telegram also shows that the privity of contract between the appellants and Ramdev and Company will not be there if Ramdev and Company were the sub-agents appointed by M/s. Gokul Nagar Sugar Mills Company Ltd. Therefore, it is clear that the relationship between the appellants and M/s. Ramdev and Sons of which Sri Ram Sahai Dhir is the sole proprietor has been considered by the Appellate Tribunal.20. Regarding Shiv Nand Verma, his evidence has only to be read to be rejected. Even according to the appellants M/s. Gokul Nagar Sugar Mills Company Ltd. was appointed as Selling Agent only by the resolution dated July 26, 1944. Apart from the very contradictory answers given by this witness, he has categorically stated in answer to a specific question put by the appellants that he was appointed even in 1942 as sub-agent by M/s. Gokul Nagar Sugar Mills Company Ltd., on a commission of -0-4-0%. This evidence is absolutely false and of no use to support the case of the appellants because in 1942 M/s. Gokul Nagar Sugar Mills Company Ltd. was not in the picture. The evidence of this witness does not establish that M/s. Gokul Nagar Sugar Company Ltd. had appointed him as their sub-agents and were paying him commission, in their capacity as the selling agent of the appellants. The Appellate Tribunal has referred to the evidence of Shiv Nand Verma given before the income-tax Officer and it has also noted that reasons for not acting on that evidence. Therefore, it is not as if that the Appellate Tribunal was not conscious of this evidence on record which is absolutely valueless so far as the appellants are concerned.21. Regarding the receipts Nos. 948 dated 24-4-1946 and 298 dated February 13, 1947, it is no doubt true that they have not been specifically adverted to by the Appellate Tribunal, But it is rather surprising that the appellants should be able to produce only these two receipts when they claim that M/s. Gokul Nagar Sugar Mills Company Ltd. has been acting as their selling agent from 1944. Further the persons who are mentioned there as sub-agents have not at all given evidence before the Income-tax authorities. Those receipts lose all significance especially when the evidence of Ram Sahai Dhir and Shiv Nand Verma who claim to have been appointed as sub-agents by the selling agent has been rejected by the Appellate Tribunal, Obviously, in view of the other evidence against the appellants the Appellate Tribunal did not think it worthwhile to specifically refer to these tow receipts on record. But the non-reference to these two receipts cannot be said to have in any manner vitiated the conclusion arrived at by the Appellate Tribunal. As we have stated earlier, we have only referred to these items of evidence on record to show that the finding of the Appellate Tribunal are based on the material on record and that the finding is such which could on that evidence be reasonably reached.22. The statement in the order of the High Court that the Appellate Tribunal has not referred to the evidence of Ram Sahai Dhir as such is prima facie correct. But the High Court missed the crucial fact that his evidence is really as proprietor of M/s. Ramdev and Company and the relationship between this Company and the appellants has been considered by the Appellate Tribunal.23. As laid down by this Court in (1967) 66 ITR 462 (SC) the Income-tax Appellate Tribunal has to act judicially in the sense that it has to consider with due care all material facts and the evidence in favour of and against the assessee and record its finding on all the contentions raised by the assessee and the Commissioner in their light of the evidence and the relevant law. From the discussion contained above it is clear that it cannot be said that the Appellate Tribunal in the case before us has omitted to consider any material fact or any material piece of evidence.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]17. We are of the opinion that there is no substance in these appeals. We have gone through the orders of the Income-tax Officer, the Appellate Assistant Commissioner, as well as the income-tax Appellate Tribunal. No doubt, there is a resolution produced by the appellants dated July 26, 1944 in and by which the sugar selling agency of Nawabganj Sugar Mills Co. Ltd. is given to M/s. Gokul Nagar Sugar Mills Co. Ltd. on 0-12-0%. There is no other evidence to show the nature of the arrangement or as to how exactly this resolution is to be carried out.18. A reading of questions Nos. 1 to 3 clearly shows that the points raised therein are purely questions of fact. But as the contention of Mr. V. S. Desai is that certain material facts have not been considered at all by the Tribunal and hence the findings arrived at by it cannot be conclusive, in view of this infirmity, we will refer to the evidence on record not with a view to decide whether the Tribunal has properly appreciated the evidence, but to see whether there was evidence to support the findings recorded by the Tribunal and whether the finding could on that evidence be reasonably reached.19. We have already referred to the resolution dated July 26, 1944. The first criticism of MR. V. S. Desai is that the evidence of sub-agents appointed by the selling agent has not been considered by the Appellate Tribunal. The two witnesses in this regard are Ram Sahai Dhir and Shiv Nand Verma. The contention of Mr. V. S. Desai that the evidence of Ram Sahai Dhir that the evidence of Ram Sahai Dhir has not been considered, as such by the Appellate Tribunal, is only technically correct because it is seen from the order of the Appellate Tribunal that it has referred to the relationship between the appellants and a company known as M/s. Ramdev and Company. Ram Sahai Dhir in his evidence has clearly stated that he is the sole proprietor of M/s. Ramdev and Company. He has further stated that after he got the sub agency from M/s. Gokul Nagar Sugar Mills Co. Ltd. he along with his brother and son formed a partnership for this purpose in the name of M/s. Ramdev and Company. The Appellate Tribunal in paragraph 7 of its order has considered a telegram sent on September 1, 1948 to M/s. Ramdev and Company by the Chairman of Nawabganj Sugar Mills Co. Ltd. That telegram states that the agency of M/s. Gursarandas Kapur and sons has been terminated and M/s. Ramdev and Company is asked to sell and freely secure challans. Ram Sahai Dhir in his evidence has stated that M/s. Gursarandas Kapur and Sons were the selling agent of the appellants originally and that he started his own sugar business in or about 1947, Therefore, the telegram, as held by the Appellate Tribunal clearly shows that the appellants were having direct dealings with Ramdev and Company and that M/s. Gokul Nagar Sugar Mills Co. Ltd., is nowhere in the picture. This telegram also shows that the privity of contract between the appellants and Ramdev and Company will not be there if Ramdev and Company were the sub-agents appointed by M/s. Gokul Nagar Sugar Mills Company Ltd. Therefore, it is clear that the relationship between the appellants and M/s. Ramdev and Sons of which Sri Ram Sahai Dhir is the sole proprietor has been considered by the Appellate Tribunal.20. Regarding Shiv Nand Verma, his evidence has only to be read to be rejected. Even according to the appellants M/s. Gokul Nagar Sugar Mills Company Ltd. was appointed as Selling Agent only by the resolution dated July 26, 1944. Apart from the very contradictory answers given by this witness, he has categorically stated in answer to a specific question put by the appellants that he was appointed even in 1942 as sub-agent by M/s. Gokul Nagar Sugar Mills Company Ltd., on a commission of -0-4-0%. This evidence is absolutely false and of no use to support the case of the appellants because in 1942 M/s. Gokul Nagar Sugar Mills Company Ltd. was not in the picture. The evidence of this witness does not establish that M/s. Gokul Nagar Sugar Company Ltd. had appointed him as their sub-agents and were paying him commission, in their capacity as the selling agent of the appellants. The Appellate Tribunal has referred to the evidence of Shiv Nand Verma given before the income-tax Officer and it has also noted that reasons for not acting on that evidence. Therefore, it is not as if that the Appellate Tribunal was not conscious of this evidence on record which is absolutely valueless so far as the appellants are concerned.21. Regarding the receipts Nos. 948 dated 24-4-1946 and 298 dated February 13, 1947, it is no doubt true that they have not been specifically adverted to by the Appellate Tribunal, But it is rather surprising that the appellants should be able to produce only these two receipts when they claim that M/s. Gokul Nagar Sugar Mills Company Ltd. has been acting as their selling agent from 1944. Further the persons who are mentioned there as sub-agents have not at all given evidence before the Income-tax authorities. Those receipts lose all significance especially when the evidence of Ram Sahai Dhir and Shiv Nand Verma who claim to have been appointed as sub-agents by the selling agent has been rejected by the Appellate Tribunal, Obviously, in view of the other evidence against the appellants the Appellate Tribunal did not think it worthwhile to specifically refer to these tow receipts on record. But the non-reference to these two receipts cannot be said to have in any manner vitiated the conclusion arrived at by the Appellate Tribunal. As we have stated earlier, we have only referred to these items of evidence on record to show that the finding of the Appellate Tribunal are based on the material on record and that the finding is such which could on that evidence be reasonably reached.22. The statement in the order of the High Court that the Appellate Tribunal has not referred to the evidence of Ram Sahai Dhir as such is prima facie correct. But the High Court missed the crucial fact that his evidence is really as proprietor of M/s. Ramdev and Company and the relationship between this Company and the appellants has been considered by the Appellate Tribunal.23. As laid down by this Court in (1967) 66 ITR 462 (SC) the Income-tax Appellate Tribunal has to act judicially in the sense that it has to consider with due care all material facts and the evidence in favour of and against the assessee and record its finding on all the contentions raised by the assessee and the Commissioner in their light of the evidence and the relevant law. From the discussion contained above it is clear that it cannot be said that the Appellate Tribunal in the case before us has omitted to consider any material fact or any material piece of evidence.