2010 (9) TMI 93

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....n this income tax appeal under Section 260-A of the Income Tax Act, 1961 relating to assessment year 1983-84 it is alleged that procedure of Section 145 was required to be followed in making best judgment assessment and thus the addition of Rs.1 lac to the gross turn over of the 'bidi' manufactured out of 'tendu' leaves was not justified. The appellant has pleaded that the following questions o....

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....at the assessee had earned more profit than what the assessee had shown, are perverse and without any evidence on record and based on conjectures and surmises and are contrary to its own findings recorded in Para 9 of the impugned order and hence not legal and valid and sustainable in law?" We have gone through the assessment, appellate orders and the judgment of the ITAT. The original assessme....

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....ssment year 1984-85 the ratio was not found to be uniform. The assessee had shown the major consumption in the relevant year and thus the consumption was disallowed and income of Rs.4,74,138.33 was added to the income of the assessee. The CIT (A) allowed the appeal in part. In para 9 the CIT (A) stated as follows:- "9. The consumption of Biri leaves depends on quality and size of the leaves and....

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....ned order the ITAT dated 2.6.2006 has only observed that in the absence of any uniform consumption of tendu leaves, the only conclusion is that the provisions of Section 145 are applicable to the facts of the case and added Rs.1 lac on account of consumption of bidi leaves out of Rs.4,74,178/-. We do not find that the procedure under Section 144 was required to be followed. In the matter of rea....