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TMI Blog2012 (9) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal is suffering from non-application of mind and is not reasoned order and therefore, is perverse? 2. The assessment year is 2007-2008 and the relevant accounting period is 2006-2007. The assessee is engaged in the business of de-oiled cake powder from groundnut oil cake by solvent extractions and running an oil mill and vegetable plant at Dhoraji. Upon crushing of seeds in the oil mill, oil and oil cakes are produced. The assessee filed return on income showing total loss of ₹ 53,79,000/- for the assessment year under consideration. The assessee declared a gross profit of ₹ 35,72,930/- out of a total turnover of ₹ 11,68,59,538/- which was worked out to 3.05% as against 6.35% shown in the immediately pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yield at 38.94% whereas the assessee had suppressed the oil production by 3.68% by showing yield at 35.26%. It was submitted that the Commissioner (Appeals) as well as the Tribunal had failed to appreciate the evidence on record in proper perspective rendering the impugned order perverse. 4. As can be seen from the impugned order, the Tribunal has not recorded any independent findings but has placed reliance upon its earlier orders passed in the assessee's own case in relation to assessment years 2006-2007 on identical set of facts and has upheld the order passed by the Commissioner (Appeals). It would therefore, be necessary to advert to the order passed by the Commissioner (Appeals) wherein, he has, inter alia, observed as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied by the Assessing Officer, the husk is not first reduced because the bare seeds are not crushed independently. As explained by the appellant, the laboratory reports referred to by the Assessing Officer speak of the pure yield of 48% of bare seeds only in laboratory condition for testing purposes only of the quality of the seeds. It does not refer to the overall oil recovery from the entire process. After all the process equation has to balance as per the two stage process of crushing and extracting right up to its logical and technical end. Apart from above, it is also seen that no reason other than above for suppression of production and sales have been given by the Assessing Officer and nothing is stated to be found during survey sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the material on record has found that the expert opinion, more particularly, that of the Government approved laboratory in fact supports the case of the assessee and the reasonability of the yield declared. The Commissioner (Appeals) has found that the Assessing Officer had proceeded on an erroneous understanding of the process of oil extraction. He has further noted that the assessee had followed the method of computing yield consistently in the past and as such the same could not have been rejected without any cogent reasons. The Commissioner (Appeals) has also found as a matter of fact that during the course of survey nothing was found to indicate unaccounted production or sales outside the books. The Tribunal has concurred with the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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