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2013 (9) TMI 51 - HC - Income TaxRejection of books of accounts - Whether Tribunal was legally correct in upholding the rejection of accounts and in sustaining the addition for sums aggregating Rs. 49,13,859/- as had been made in the assessment, on the ground that the burning loss as claimed by the assessee was excessive - Held that:- there has to be some burning loss during the process of rolling. But then again, in our opinion, and in view of Smith's report cannot be to the extent of 4.2% or 4% - when the assessee has not computed his closing stock by way of actual weighment, the extent of burning loss on this account admissible to the assessee remained a question of estimate which, in our opinion, can vary from persons to person and stage to stage - so far as burning loss during the course of rolling of assessee's own produced ingots and billets is concerned, the burning loss @ 3% will met the ends of justice. Even though provisions of sub-section (1) of Section 145 of the Act has rightly been invoked, the estimate of income has to be based on some materials. The Commissioner of Income Tax (Appeals) had taken into consideration various factors while accepting the burning loss shown by the appellant which in our considered opinion the Tribunal had failed to advert into - Matter remitted back - Decided partly in favour of assessee.
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