2011 (7) TMI 1213

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....91, the Assessing officer estimated sale outside the books. This order came to be challenged before the CIT(Appeals) which reduced the additions made by the Assessing Officer. Against this order of CIT(Appeals), both the Revenue and assessee respondent approached the Income Tax Appellate Tribunal and the tribunal by a common judgement held in favour of the assessee and against the Revenue. The impugned judgement of the tribunal dated 27.7.2000 is in challenge before this Court by way of present appeal. 2. While admitting the appeal, following question of law was framed for determination of this Court : "Whether on the facts and in the circumstances of the case, the Appellate Tribunal has substantially erred in law in deleting the di....

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.... an agricultural commodity. The quality of cotton seed would certainly impact the raw cotton seed oil and consequently refined cotton seed oil. Quality of raw material would depend on several factors such as rainfall, quality of soil and other such factors. It was also noted that if the raw cotton seed oil is obtained from crushing of inferior quality of cotton seed, then the process loss was likely to be higher, but Gross Profit rate may go up since the assessee may have purchased the raw material at a cheaper rate. Tribunal also noted that there were instances where though process loss was high, Gross Profit rate was also high compared to other years. Tribunal noted contention of the assessee that the production recorded and maintained by....