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2010 (9) TMI 93 - HC - Income TaxBest Judgment Assessment - Section 144 and section 145 -Mis-declaration of profit - consuming high quantity of input the assessee has manufactured larger number of output, did not account for the same in the books of accounts - ITAT directed to disallow cost of the excess consumption of various raw materials except tobacco - consumption of Biri leaves depends on quality and size of the leaves and wastage in handing. When the leaves are dried they become bittle. Some time due to the moisture or other factors the quality of the leaves changes – Held that: - there cannot by a standard formula for the consumption of Biri leaves viz-a-viz numbers of Biri manufactured - questions of law as raised in the appeal does not arise for consideration of the court. Procedure under Section 144 was not required to be followed. In the matter of reassessment, after revised return, when the appellant had notice of the proceedings and was participating with the appeal decided on the ground of consumption of bidi leaves to support the turn over, no further notice procedure was to be followed.
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