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TMI Blog2010 (9) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... on of various raw materials except tobacco - consumption of Biri leaves depends on quality and size of the leaves and wastage in handing. When the leaves are dried they become bittle. Some time due to the moisture or other factors the quality of the leaves changes – Held that: - there cannot by a standard formula for the consumption of Biri leaves viz-a-viz numbers of Biri manufactured - questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st judgment assessment and thus the addition of Rs.1 lac to the gross turn over of the 'bidi' manufactured out of 'tendu' leaves was not justified. The appellant has pleaded that the following questions of law may be decided in this appeal:- "1. Whether on the facts and in the circumstances, the order of the Ld. ITAT sustaining the addition of Rs.1,00,000 on account of excess consumption of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs recorded in Para 9 of the impugned order and hence not legal and valid and sustainable in law?" We have gone through the assessment, appellate orders and the judgment of the ITAT. The original assessment order dated 27.3.1986 on the income tax return filed by the appellant was set aside by the CIT (A). The revised return filed on 17.3.1989 declared total income at Rs.8,49,830/- as against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was added to the income of the assessee. The CIT (A) allowed the appeal in part. In para 9 the CIT (A) stated as follows:- "9. The consumption of Biri leaves depends on quality and size of the leaves and wastage in handing. When the leaves are dried they become bittle. Some time due to the moisture or other factors the quality of the leaves changes. Therefore, there cannot by a standard formul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts of the case and added Rs.1 lac on account of consumption of bidi leaves out of Rs.4,74,178/-. We do not find that the procedure under Section 144 was required to be followed. In the matter of reassessment, after revised return, when the appellant had notice of the proceedings and was participating with the appeal decided on the ground of consumption of bidi leaves to support the turn o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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