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TMI Blog1982 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Appellate Tribunal, Indore, for stating the case and referring it to this court for deciding the following questions : " (1) Whether, on the facts and circumstances of the case, the Tribunal was justified in applying the proviso to section 145 ? (2) Whether, on the facts and circumstances of the case, the Tribunal was justified in confirming the addition by estimating the G. P. rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongly applied the proviso to s. 145(1) of the I.T. Act. He, therefore, deleted the addition. The Department went up in second appeal before the Income-tax Appellate Tribunal. The Appellate Tribunal noted in para. 3 of its order as follows : " It was conceded on behalf of the assessee that the day-to-day stock of the raw and finished goods and consumption was not maintained by it and, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educed from 14.9% to 13% and addition to the extent of Rs. 21,501 only was maintained. Learned counsel for the assessee contended, firstly, that there was no concession as has been referred to in the Tribunal's order and, secondly, that the material on record did not warrant action under the proviso to s. 145(1) of the I.T. Act. On behalf of the assessee an affidavit of the I.T. consultant who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the assessee could not explain whether the closing stock was of processed material or unprocessed material. He further noted patent inconsistencies in the valuation of the closing stock. Thirdly, he found that sales made by the branch to the head office were at no profit and in case those materials have been sold, the entire profit will have to be accounted for by the head office. The same ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntenance of day-to-day stock of raw material and the finished goods and the application of the proviso to S.. 145(1) of the Act by the assessee has also to be kept in mind and the affidavit of the counsel does not fully rebut the observation made by the Tribunal. In the circumstances, we do not agree with the contention of the learned counsel that the aforesaid questions of law arise out of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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