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TMI Blog2010 (10) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... on of evidence and are not shown to be perverse, no substantial question of law arises for consideration, appeal is dismissed. - IT Appeal No. 462 of 2010 - - - Dated:- 5-10-2010 - Adarsh Kumar Goel, Ajay Kumar Mittal, JJ. Rajesh Katoch for the Appellant ORDER Adarsh Kumar Goel, J 1. This appeal has been preferred by the revenue under section 260A of the Income-tax Act, 1961 (for short, "the Act") against the order dated 16-9-2009 of the Income-tax Appellate Tribunal, Chandigarh in ITA No. 1045/Chandi/2008 for the assessment year 2005-06 proposing to raise following substantial questions of law:- "(i) Whether in the facts and circumstances of the case, the Hon'ble ITAT is justified in law in deleting the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Refined Palm Oil, out of 2,37,677 Kgs. of imported palm oil, purchased from the market in the "work-in-progress" for producing refined palm oil to be used for its in house consumption or sale to outside parties, the Assessing Officer is of the view that the imported refined palm oil claimed to be purchased as above, was sold by the appellant outside the books of account and that in the WIP, the appellant had used other crude palm oil which was purchased outside the books of account. It is explained by the appellant that the refined palm oil was initially taken to finished goods section and recorded in the finished goods record as per the Excise Laws. However, to remove foul smell from the refined palm oil, deodorization process had to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade very serious allegations against the appellant in as much as the appellant had sold goods worth Rs.1 crore outside the books of account. However, as rightly pointed out in the written submissions of the appellant, except for the details given in the quantitative tallies filed with the return of income, the Assessing Officer could not point out a single instance where the appellant has been found to have purchased or sole certain goods outside the books of account. In the written submissions of the appellant, which have been reproduced above, by the learned counsel, the complete stock tally of WIP and refined palm oil has been given. These details have been worked out keeping in view the contention of the appellant that 2,27,900 Kgs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e subject to Excise Department's checking. No defect in this record is stated to have been found either by the Excise Deptt. or by the Assessing Officer. There is considerable force in the contention of the appellant that in the absence of any such defects having been found, the inference drawn by the Assessing Officer could not be justified. Further, the appellant has claimed that 2,37,677 Kgs. of imported refined palm oil was purchased by the appellant from M/s Gokul Refoils and Solvent Ltd., Abohar. The appellant had in its possession complete record which is also stated to have been produced before the Assessing Officer, with regard to purchase and subsequent transportation of this oil from Abohar to Ludhiana. As already mentioned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, as already explained, the contention of the appellant is that these figures included 2,27,900 Kgs. of refined palm oil which was sent for reprocessing and not sold, as considered by the Assessing Officer. The account of the appellant are audited. The quantitative details replied upon by the Assessing Officer are also somehow given and certified by the Auditors only. Therefore, if as per these details the appellant was found to have sold 9,28,853 Kgs. of refined palm oil as against that of 7,00,954 Kgs. claimed by the appellant, the Auditors in my opinion, could not carry out the audit in the absence of details of sales of 2,27,900 Kgs. In the absence of details of alleged sales of 2,27,900 Kgs. outside the books of account which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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