2007 (1) TMI 163

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....quent assessment year, and relying on the same? 2. Whether in the facts and circumstances of the case, the Tribunal was right in ignoring the factual findings of the assessing officer, and going only by the confidential note in respect of a subsequent assessment year?" 2. The assessee claimed an expenditure of Rs.14.60 lakhs as lease rental payable to various finance companies. The Assessing Authority noted that the assessee had inflated the claim on the value of cost of acquisition on steel rolls from Rs.15,000/- to Rs.60,000/-. Consequently, in respect of assessment year 1995-96, he restricted the claim on lease rentals by Rs.15,000/- as cost of steel rolls. On appeal, the Commissioner of Income Tax Appeals partly allowed the appeal....

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....ed to a note pertaining to the assessment year 1997-98. It was noted therein that the rate for each roll is different depending upon its specifications. The note relied on by the assessee stated as follows: "The value of Rolls utilized in the assessee's factory is more than Rs.60,000/-. The value estimated in the assessment order for 1996-97 is Rs.15,000/- which has been arrived at on erroneous comparison. Since the assessment for 1996-97 has been confirmed by CIT (A) the addition of Rs.58,91,945/- has been made as above in line with the decision taken in that assessment order. However, for the fresh lease transactions entered into this year appropriate action has been taken as mentioned in the order as per discussions held with the Addi....