2016 (5) TMI 1428

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....1,000/-, which according to the learned Tribunal had been shown by the assessee as fictitious income. The aforesaid two amounts were directed to be excluded from the income of the two block periods. The reasoning given by the learned Tribunal is as follows : "We have considered the rival submissions and perused the records. We have carefully gone through the orders of the AO and the ITAT (supra). On this issue we find that the ITAT had directed that the sales and other inflation should be excluded "mainly" from the special auditors report but had never directed that such exclusion should be only from the special auditors report. There cannot be any justification for not excluding the entire inflation for the entire block period when the t....

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....sis of the Special Auditor's report, it cannot be said that there were materials before the learned Tribunal to allow the aforesaid deduction. She submitted that the order is perverse and therefore, a further question of law should be formulated. Mr.Khaitan, learned Senior Advocate drew our attention to the order dated 17th October, 2001 by which the matter was remanded to the assessing officer. The relevant part of the order reads as follows : "Following the said line, therefore, so far as this issue is also concerned, we restore the issue back to the file of the A.O. for the purpose of ascertaining the amounts of inflated sales included in the accounts of the assessee mainly from the report of Special Auditors and to deduct the same f....

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....ndix 1 of his report. The extract of report and Appendix-1 is enclosed for your ready reference as Annexure-22. We are enclosing herewith the year wise details of sales inflation through price increase debit notes for the year 1992-93 to 1995-96 as per Annexure-23." The aforesaid two paragraphs referred to Annexures-22 and 23. Those Annexures were admittedly not included in the Paper Book filed before the learned Tribunal, except as indicated hereafter, a copy whereof has been supplied to us by Mr.Khaitan. What is the amount of profit which was inflated by the assessee is not even disclosed in this letter dated 8th January, 2003. There is a reference in the letter dated 8th January, 2003 to Annexures 22 and 23. We are told that the summar....