TMI Blog2012 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... INCOME TAX APPEAL No. - 27 of 2002 - - - Dated:- 12-1-2012 - Uma Nath Singh, Dr. Satish Chandra, JJ. For Appellant :- S.M.K.Chaudhary For Respondent :- S.C.Mishra (Per Dr. Satish Chandra, J) 1. This appeal under section 260-A of the Income Tax Act has been filed against the order and judgment dated 17.01.2002 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No.450 (Alld.) of 1994. 2. On 17.03.2010, a Coordinate Bench of this Court has admitted the present appeal on the following substantial questions of law: 1.Whether the Tribunal has committed substantial illegality by not considering the grounds raised by the appellant in terms of objection filed before the Assessment Authority? 2.Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the G.P. rate was shown 16.20% in comparison to last year, where it was 33.44%. He further submits that the lower authorities have not considered the explanation of the assessee pertaining to the cost of production and the average selling price. He submits that the A.O. has relied on the previous record and the gross profit rate of the last year. No reliance could have been placed on the material of the previous assessment year, so the order passed by the Tribunal is totally illegal and invalid. 6. According to the learned counsel for assessee-appellant, for the assessment year 1991-92, production cost increased to Rs.612.49 in comparison to the earlier year, where it was 539.42. Thus, there was a difference of Rs.73.07, which comes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." 8. He also relied the ratio laid down in the following cases: 1.Shivsagar Veg. Restaurant vs. Assistant Commission of Income Tax another [2009] 317 ITR 433 (Bom); 2.Commissioner of Income Tax vs. Dunlop India Ltd. Reported in ITR Volume 197, page 34; and 3.Malani Ramjivan Jagannath vs. Assistant Commissioner of Income Tax [2009] 316 ITR 120 (Raj) 9. Lastly, he made a request that the impugned order passed by the Tribunal may kindly be set aside. 10. On the other hand, Sri D.D. Chopra, learned counsel for the Department supported the order of the lower authority as well as the impugned order passed by the Tribunal. He submits that the books of account were not properly maintained by the assessee. The verification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relief specially when the estimation is a question of fact. The Tribunal is a final fact finding authority as per the ratio laid down in the case of Kamla Ganpati vs. Controller of Estate Duty, 253 ITR 692 (SC). 13. In the instant case, the addition is made on the estimate basis, which is a question of fact as per ratio laid down in the case of Utkal Road Lines vs. Registrar, Income Tax Appellate Tribunal and others (2011) 336 ITR 149 (Orissa), wherein it was observed that the application of G.P. rate on estimate basis is a question of fact. The Hon'ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. (2003) 261 ITR 275 (SC) observed that valuation of raw material for the purpose of tax on estimate basis is a question o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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