2010 (10) TMI 812

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....MENT   Ajay Kumar Mittal:   1. This appeal was admitted by this Court vide order dated 4.5.2006 for determination of the following substantial question of law:-   "Whether the order of the Tribunal is perverse whereby addition of Rs.2,73,000/- made on account of excess consumption of furnace oil has been upheld without there being any material?"   2. Put shortly, th....

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....Assessing Officer, the assessee took the matter in appeal before the Commissioner of Income Tax (Appeals) [in short "the CIT(A)"] who vide order dated 23.12.1997 upheld the view of the Assessing Officer. On further appeal by the assessee before the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal"), the Tribunal vide order dated 19.1.2005 affirmed t....

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....that the AO observed that prior to survey, the assessee was purchasing only 12 M.T. of furnace oil every month. However, the AO observed that after the survey, purchases of furnace oil increased from 24 M.T. to 36 M.T. In all the assessees purchases were to the tune of 144.8 M.T. in the post survey period. The assessee was confronted with these facts and asked to furnish the details of opening sto....

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....uent period. Taking into account, the opening stock found on the date of survey and purchases made during the survey period, the AO worked out the total quantity of purchases at 146200 Ltrs. after reducing the quantity of closing stock of 16700 Ltrs. Taking into account the average consumption of 12 M.T. of furnace oil per month in the pre-survey period, the AO worked out the excess quantity of co....