TaxTMI 
TaxTMI 
TaxTMI 
2015 (2) TMI 818
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....of excess consumption of heptene without considering that the assessee failed to furnish explanation for excess consumption of 488 MT of Heptene ? (ii) Whether the decision of the Income-tax Appellate Tribunal is perverse on facts in upholding the decision of the Commissioner of Income-tax (Appeals), wherein the Commissioner of Income-tax (Appeals) deleted the addition on account of excess consumption of heptene after relying upon his order in the case of the assessee for the assessment years 1994-95 and 1995-96 without appreciating that the facts and circumstances of these assessment years were different from the current assessment year ?" (3) (i) Whether, on the facts and in the circumstances of the case and in law, the Tribunal was correct in deleting the addition of Rs. 86,87,381 on account of excess consumption of catalyst without considering that the assessee failed to furnish explanation for excess consumption of 1593 Kg. catalyst ? (ii) Whether the decision of the Inc....
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....l. The Commissioner of Income-tax (Appeals) deleted the same placing reliance on the orders in the case of the very assessee for the assessment years 1994-95 and 1995-96. The matter was carried in appeal before the Tribunal by the Revenue in the earlier years. The Tribunal rejected the Revenue's appeal, making the following observations : "14. The fourth ground is with respect to the addition of Rs. 96,43,855 on account of excess consumption of hexene. The Assessing Officer noticed that the assessee has fetched 101 per cent. yield of production of 5024 MT of Iso Octonol whereas, in the immediately preceding assessment year the yield was 111.81 per cent. The consumption ratio of heptene was 98 per cent. as compared to 89 per cent. in the immediately preceding assessment year. The assessee, inter alia, submitted that it had received 2377 MT of heptene against which it had manufactured 2222 MT of octonol on job work basis for Shreeji Plasticizers and Balaji Polymers. On perusing the monthly details of receipt of goods for conversion, the Assessing Officer noticed the 2873 MT of heptene was received for....
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.... consumption would be less than 1.4 per cent. of the total consumption of material which is normal in these type of industries and should be ignored. (ii) The Assessing Officer has failed to point out any reasons for rejection of the books of account before going for estimation of the income. It was pointed out that detailed books of account including quantitative details thereof have been maintained by the appellant, and, therefore, there is no reasons for rejection of the same. (iii) There is increase in the rate of gross profit as compared to earlier years including the assessment year 1993-94 with which the production figures have been compared. The appellant submitted that the rate of gross profit was 40.93 per cent. for the assessment year 1993-94 which had gone up to 41.59 per cent. in the assessment year 1995-96 and had further risen to 47.21 per cent. in the year under consideration. This factor was totally ignored by the Assessing Officer. I have gone through ....
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....ption of heptene and catalysts. The change in the manufacturing process was also demonstrated. Such grounds were also placed before the Tribunal in the earlier years in which the assessee's stand was accepted. We have also perused the orders of the Tribunal made in the earlier assessment years, i.e., the assessment years 1994-95 and 1995-96 where such a question cropped up. Apparently, the Revenue has not carried the decision of the Tribunal in further appeal. In view of such facts and in view of issue being predominantly based on appreciation of facts on record, we do not find any question of law arising. Question No. (4) pertains to the agreement of lease and buy back entered into by the assessee with the Rajasthan State Electricity Board. Learned counsel for the Revenue vehemently contended that the machinery was purchased and leased back on the same day without actual payment. He, therefore, desire to distinguish the judgment of this court in the case of CIT v. Gujarat Gas Co. Ltd. reported in [2009] 308 ITR 243 (Guj). We, however, notice that by the impugned judgment, the Tribunal has merely remanded the issue back to the Assessing Officer for reconsideration, after ful....
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.... the details called for were not furnished. During the course of hearing the learned counsel for the appellant brought to my notice that all the relevant details were furnished to the Assessing Officer during the course of assessment proceedings. The appellant also produced before me the copies of the details which were furnished before the Assessing Officer. In the appellant's own case for the assessment years 1994-95 and 1995-96, on identical facts the issue was decided in favour of the assessee and the entire addition was deleted by me. Following the same, I delete the addition of Rs. 10,11,025 made in the year under consideration." In further appeal, the Tribunal dismissed the Revenue's appeal in the following manner : "6. We have heard the rival submissions and perused the material on record. It is seen that the Assessing Officer had disallowed the expenses for the reason that the assessee had not furnished the details. The Commissioner of Income-tax (Appeals), while deleting the addition, has noted that the details were indeed furnished by the assessee before the Assessing Officer. He further noted t....