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Issues involved:
The judgment addresses the question of whether an appeal lies to the AAC under section 246(c) of the Income-tax Act, 1961, against the assessment relating to the addition of Rs. 32,529 to the machine account of the assessee when the assessment was made on an agreed basis. Details of the Judgment: The assessee sold centering machines to M/s. Modern Enterprisers at a certain rate, with the cost indicated in the books of account differing from the cost calculated by a board of experts. The ITO made an addition to the net income of the assessee based on this discrepancy. The AAC initially reduced the addition, but upon rehearing, further reduced it on the grounds that the assessee had not been confronted with the experts' opinion. The Tribunal considered whether the assessee was bound by an admission made in a letter regarding the cost of the machines. Despite the absence of the experts' report in the record, the Tribunal found that the assessee had been confronted with the report and had agreed to the income computation based on the experts' assessment. The Tribunal rejected the contention that the assessment was invalid due to lack of confrontation with the report. The court upheld the Tribunal's finding that the assessee was bound by the admission made in the letter and that the ITO was justified in computing the profit based on the experts' cost assessment. The court noted the absence of authority supporting the assessee's argument against the assessment method used. The question was answered in favor of the department, allowing the appeal against the assessee. Separate Judgment: No separate judgment was delivered by the judges in this case.
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