1985 (9) TMI 16

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....ent of Man Structurals Ltd., Jaipur, for the assessment year 1976-77, the Income-tax Officer, Company Circle I, Jaipur, by his order dated November 24, 1977, made an addition of Rs. 60,000 on account of excessive consumption of zinc during the previous year relatable to the aforesaid assessment year. The assessee company carried on the business of manufacture of high transmission towers which w....

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....onsumption was less than 7% and that the assessee was unable to point out any cogent reasons for a very heavy increase in the consumption of zinc during the accounting year relevant to the assessment year in question. On further appeal, the Income-tax Appellate Tribunal discussed at great length the question of consumption of zinc by the assessee company and it was pointed out that in the year ....

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.... the assessment year 1976-77 as reasonable." The Appellate Tribunal relied upon the reasons given by the assessee company for excessive consumption of zinc that during the year relevant to the assessment year 1975-76, the tank was substantially damaged and the factory remained closed for most of the time and when the tank was repaired and put to use in the assessment year 1976-77, the consumpti....

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....epartment that the question relating to the applicability of the provisions of section 145 of the Act without arriving at a finding that the assessee did not maintain proper account books, was a question of law and the Income-tax Appellate Tribunal was in error in refusing to make a reference to this court. We have considered the order passed by the Income-tax Appellate Tribunal and we find tha....