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TMI Blog2021 (7) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... any question of law, much less substantial question of law being involved in the present appeal. See M. Janardhana Rao [ 2005 (1) TMI 14 - SUPREME COURT ] - R/TAX APPEAL NO. 166 of 2021 - - - Dated:- 6-7-2021 - HONOURABLE MS. JUSTICE BELA M. TRIVEDI and HONOURABLE DR. JUSTICE ASHOKKUMAR C. JOSHI Appearance: MR. VARUN K.PATEL(3802) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ORAL ORDER (PER : HONOURABLE MS. JUSTICE BELA M. TRIVEDI) 1. The appeal filed by the appellant The Principal Commissioner of Income Tax, Vadodara-3 under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the said Act ) arises out of the order dated 30.9.2019 passed by the Income Tax Appellate Tribunal (her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ror of law in not holding the addition made by the Assessment Officer of ₹ 3,40,13,800/-, on account of the excess consumption of raw material while passing the impugned order and has wrongly relied upon the order passed in ITA No.2018/Ahd/2010 for the A.Y. 1998-99, which had remained unchallenged before the ITAT, without appreciating the fact that no further appeal was filed by the Department against the said order due to low tax effect. According to Mr. Patel, the Assessing Officer, after considering the details of income and expenditure for the relevant assessment year, had come to the conclusion that the Assessee had made an attempt to claim excess consumption of raw material with proportion to the production, excess wastage and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, the very comparison made by the Assessing Officer is not correct. The appellant was producing floor tiles since 1988 in the Dora Unit, and in the current year, the appellant started production of wall tiles. Therefore these are not comparable at all and if compared would not give a correct picture. The assessing Officer has not pointed out any defects in the books of account. High consumption of RM or low GP by itself is not a defect in the books of account. The appellant has maintained proper records. The purses, sales and expenses have been accepted and no fault has been found in the same. The appellant s books of account are audited by auditors duly appointed under the Companies Act, 1956 and also by the Tax Auditors u/s. 44AB. None ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper records for purchases, sales and expenses which have been accepted by the assessing officer and not fault has been found in the same. Further, the Books of Accounts of the Assessee are audited u/s. 44AB of the Act and no adverse comments has been given by the assess. Thus, this issue is also covered by our findings given in the case of Assessee for the A.Y. 1998-99 in above part of this order. In view of these facts, this ground of appeal of the Revenue is accordingly dismissed. 7. In short, the CIT (Appeals) and the ITAT have recorded the concurrent findings by observing that the Assessing Officer had wrongly added ₹ 3,40,13,800/- on account of excess consumption of raw material and there was no justification given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 260A. Such appeal cannot be decided on merely equitable grounds. 15. An appeal under Section 260A can be only in respect of a 'substantial question of law'. The expression 'substantial question of law' has not been defined anywhere in the statute. But it has acquired a definite connotation through various judicial pronouncements. In Sir Chunilal V. Mehta Sons Ltd. v. Century Spinning Mfg. Co. Ltd., AIR (1962) SC 1314, this court laid down the following tests to determine whether a substantial question of law is involved. The tests are: (1) whether directly or indirectly it affects substantial rights of the parties, or (2) the question is of general public importance, or (3) whether it is an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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