2013 (12) TMI 1167

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.... J. N. Mathur ORDER (Delivered by Hon'ble Dr. Satish Chandra, J.) The present reference has been made by the Department under Section 256(2) (already repealed) of the Income-Tax Act, 1961, for the assessment year 1977-78. The brief facts of the case are that the assessee, a State Government Undertaking, is being assessed in the status of Company (Public Limited). The method of accounti....

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....n account of store ? (B) Whether on the facts and in the circumstances of the case, the Tribunal was, in law, justified in deleting Rs.70,00,000/- made as addition on account of value of scrap ? So, no reference was made by the Tribunal on above-mentioned two questions proposed by the revenue/Department. Being aggrieved, the present reference application has been moved by the Department. ....

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....ion was deleted and the Tribunal by upholding the findings of the CIT(A). Regarding the second question, it appears that the AO has made the additions of Rs.70,00,000/- on account of value of scrap by observing that the assessee has not maintained any details of scrap and its value. So, he made the addition of Rs.70,00,000/- for the value of the scrap, which resulted from this massive repairs o....

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....imate basis. Needless to mention that estimation is a question of fact as per the ratio laid down in a catena of judgments including : 1.New Plaza Restaurant v. ITO 309 ITR 259 H.P. 2.Sanjay Oil Cake v. C.I.T. 316 ITR 274 Gujarat 3.Shriram Jawar vs. ITO, 321 ITR 400 Rajasthan; 4.Zora Singh vs. CIT 296 ITR 104 P.& H; 5.Bharat Hari Singhania vs. CWT 1994 suppl.(3) SCC 46; 6.CIT ....