9911796707
TMI Blog2013 (3) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... ct") proposing the following questions of law for determination of this Court: A. "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in rejecting the book results and not following the provisions of Section 145 of the Act? B. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in disregarding the order of the previous as well as the subsequent Assessment Years wherein the burning loss claimed by the assessee was allowed? 2. Heard learned counsel Mr. Tej Shah appearing for the appellant and learned Sr. Counsel Manish Bhatt, who appeared for on behalf of the Department, on issuance of notice. Before adverting to the rival s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of appeal before the Income Tax Appellate Tribunal, it dismissed the claim of the Revenue in respect of unexplained share capital but partly allowed the revenue's claim regarding burning loss. It allowed the claim at an estimated figure of 30% for the year under consideration, as against 38.39% claimed by the assessee vide its impugned order. This disallowance of 8.39% of the burning loss claimed by the appellant by not appreciating the claim of its sister concern namely Metal Man having identical nature of business and yet claiming loss at the rate of 36.46% is the major cause of grievance. 6. Learned counsel Mr.Shah appearing for the appellant urged fervently that when the Assessing Officer did not find any defect from the books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al is 8% of the burning loss . As can be seen from the order of the Tribunal, it has considered at length, the facts and the explanation offered and also studied the materials year after year to conclude that instead of allowing the claim of 38.39% towards burning loss, estimated figure of 30% was arrived at for the year under consideration treating the same as an appropriate and just consideration, by holding thus:- "10.Considering all these facts and the explanation offered that the raw-material in the manufacturing process of the assessee was "Aluminum Scrap" containing metallic and non-metallic impurities and also taking into account the fact that the book results have not been disturbed by the assessee and quantitative manufacturing d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities below are directed to disallow the burning loss at 8.39% the resultant percentage, as arrived at after the discussion made hereinabove. With the result, Revenue's ground is partly allowed." 9. It needs to be noted that the figures of burning loss of subsequent years were placed on record before the Tribunal. It also noted the facts that the burning loss including Hard Coke was computed at 50.46% by the Auditors for the year 2006-07 and excluding Hard Coke, the figure was worked out at 42.73% which had gone down to 29.78% . As also keeping in mind the fact that Hard Coke which is used for heating up furnace and which is not an ingredients of the raw-material purchased for the purpose of manufacturing of finished goods, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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