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TMI Blog2010 (10) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the appeal has been sufficiently explained and is accordingly condoned. The delay condonation application is allowed and the appeal was heard. We have heard learned standing counsel appearing for the appellants - the Income Tax Department, Muzafffarnagar. The Commissioner, Income Tax Department, Muzaffarnagar has challenged the order of the Income Tax Appellate Tribunal, Delhi Bench 'C', New Delhi dated 21.3.2003 in ITA No. 5158/Del/98, Assessment Year 1994-95, on the following grounds:- "1. The Hon'ble I.T.A.T has erred in law and on facts in upholding the ad hoc addition of Rs.1,25,000/- out of addition of Rs.14,07,744/-, which has based on a comparable case, particularly in view of the fact that rejection of books of account has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) found that the accounts have been maintained properly and that the additional income was not justified. The findings of the CIT (Appeals) with regard to maintenance of accounts, gross profit and statutory audit quoted as follows:- " The appellant company has adopted a regular method of accounting, which is complete and exhaustive in all respects. The method of accounting adopted by the appellant company is free from any defects. All the purchases are supported by purchase invoices. It is also highly presumptive that the appellant has made sales out of books of the unaccounted production, while the finished goods is as excisable commodity and accordingly every sale has to be on the strength of the Excise gate pass. All the purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unting is such that income can be properly deducted there from. In fact the ld. A.O., has accepted the method of accounting though has rejected the books of a/cs in a summary manner u/s 145 of I.T. Act, 1961. It is the case of a company and under the provisions of law, the statutory Audit had to be made by the appointed Auditors. All the books of accounts maintained by the appellant company had been checked, examined and verified and auditor who gave certificate to the effect that proper books of a/cs as required by law have been kept by the appellant company. The ld. A.O., has also not disputed the maintenance of proper books of accounts and also the verifiability of purchases and sales. In absence of any adverse or contrary findings, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing authority, in adding the income, as suppressed production on the ground of low yield. The assessee has given sufficient explanation of the consumption, which was not comparable to the yield of M/s. Khurana Paper Mill. The adhoc addition of Rs.1.25,000/- was also justified as corresponding to the yield percentage. The Tribunal found that the reasons to be good and sufficient. We also do not find that the addition of Rs.1,25,000/- alone, which was also sufficiently explained, based on reasons of rejecting the low yield assessed by the assessing authority requires interference. With regard to addition of Rs.1 lac, it is contended by the counsel of the revenue that no fresh evidence is to be accepted in appeal under Rule 46-A of the In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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