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Issues:
1. Percentage of breakages claimed by the assessee for bottles used in manufacturing. 2. Genuineness of the price paid by the assessee for the bottles. 3. Deletion of addition towards purchase of complimentary articles claimed by the assessee. Analysis: 1. Percentage of Breakages: The case involves a dispute over the percentage of breakages claimed by the assessee for bottles used in manufacturing liquor. The Assessing Officer initially deemed the claimed rate of breakages as excessive, especially for 180 ml. bottles. However, on appeal, the Commissioner (Appeals) estimated an allowance of 11% for breakages, considering the suppliers as genuine. The Tribunal further investigated the matter, confirming the existence of suppliers and explaining the higher breakage rate due to various factors like transportation, cleaning, and the use of high-speed machinery. The Tribunal ultimately determined the breakage rate to be 15.25%, emphasizing that the facts were thoroughly examined, and their decision should be considered final. 2. Genuineness of Price Paid for Bottles: Regarding the genuineness of the price paid by the assessee for the bottles, the Tribunal found the suppliers to be authentic and justified the higher price due to differences in bottle shapes and sizes. The Tribunal rejected the revenue's plea to refer this question to the Court, emphasizing that it was a factual matter already resolved by the Tribunal's findings. The Court upheld the Tribunal's decision on this issue. 3. Deletion of Addition for Complimentary Articles: The Court directed a reference on whether the Tribunal's decision to delete the addition towards the purchase of complimentary articles claimed by the assessee was legally sound. This direction was based on a similar issue previously referred by the Court concerning the same assessee for an earlier assessment year. The Tribunal was instructed to provide a statement of the case along with relevant materials to address this question, highlighting the need for a detailed examination of the matter. In conclusion, the judgment delves into the assessment of breakages, the genuineness of suppliers and prices, and the treatment of claimed expenses for complimentary articles. It emphasizes the importance of factual findings by the Tribunal and the necessity for detailed references on specific legal and factual issues for thorough examination and resolution.
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