9911796707
TMI Blog2016 (7) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... xing provisions needs to be adopted by the Court and accordingly it held activity of assessee as manufacturing activity. - Decided in favour of assessee - TAX APPEAL NO. 683 of 2008 - - - Dated:- 4-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE FOR THE OPPONENT : RULE SERVED ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this Appeal, the Appellant has challenged the judgment and order dated 08.12.2006 of the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' in ITA No.1432/Ahd/2000 for Assessment Year : 1994-1995. 2. While admitting the matter on 30.09.2008, the following substantial question of law was framed by the Court for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n turn obtained from crushing cotton seed by ginning factories. Cotton seed is an agricultural commodity. The quality of cotton seed would certainly impact the raw cotton seed oil and consequently refined cotton seed oil. Quality of raw material would depend on several factors such as rainfall, quality of soil and other such factors. It was also noted that if the raw cotton seed oil is obtained from crushing of inferior quality of cotton seed, then the process loss was likely to be higher, but Gross Profit rate may go up since the assessee may have purchased the raw material at a cheaper rate. Tribunal also noted that there were instances where though process loss was high, Gross Profit rate was also high compared to other years. Tribunal n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any additional material, only on basis of an isolated answer by one of the Directors of the company, the Assessing Officer could not have come to the conclusion that the process loss was artificially inflated. Tribunal had also relied on certificate given by the supplier of machine who stated that typically the process loss ranges between 2.65% to 4.20%. 11. In addition to above, we also notice that in earlier years, orders passed by the tribunal were accepted by the Revenue and not carried in appeal. 12. Sum total of above discussion is that we do not find that the decision of the tribunal requires reconsideration. Question No(1) is therefore, answered against Revenue. 5. As nothing is pointed out by the Revenue before this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e from known existing concerns and cost of assets were inflated. As the loans were concerned fictitious and entries were held to be havala entry, same were therefore, held disallowable under Section 68 of the Act. However,CIT(Appeals) did not agree with the reasonings of the Assessing Officer. In assessee's own case, for the assessment year 1986-1987, very same controversy had arisen where the tribunal had held in favour of the assessee by concurring with the reasonings of CIT(Appeals). On the ground that loans were ultimately obtained, interest were needed to be allowed in the opinion of both the authorities. It in terms held that they were not concerned with inflation of assets but with obtaining of loan. This issue was decided by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
