TMI Blog2004 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of an issue which was not the subject-matter of the appeal. We answer the question referred to us in the negative, i.e., in favour of the Revenue and against the assessee - - - - - Dated:- 14-12-2004 - Judge(s) : R. K. AGRAWAL., PRAKASH KRISHNA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition made by the Commissioner of Income-tax (Appeals) by exercising his powers of enhancement under section 251 of the Income-tax Act, 1961?" Briefly stated the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee preferred an appeal before the Commissioner of Income-tax (Appeals) on the addition of Rs. 3,000. It was pleaded before him that there was no hard and fast rule to determine the extent of metal alloy and as the alloy this year was more, the extent of wastage in making of ornaments was quite reasonable. It was also mentioned that the margin of profit had fallen marginally only, which was normal in this line of business. While considering the above submissions, the Commissioner of Income-tax (Appeals) called for further details to verify the reasons for fall in gross profit rates, as he felt that in the face of increasing trend in price of gold, the decline in gross profit rate was abnormal. His scrutiny of the data produced revealed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved the respondent preferred appeal before the Tribunal. The Tribunal has accepted the contention of the respondent that as the trading results have not been disturbed by the Income-tax Officer, the Commissioner of Income-tax (Appeals) could not have made any enhancement by disturbing the trading results as it was not a subject-matter of appeal. We have heard Sri A.N. Mahajan, learned standing counsel for the Revenue and nobody has appeared on behalf of the respondent-assessee. Learned counsel for the Revenue submitted that under the Explanation to section 251 of the Act, the appellate authority, is empowered to consider and decide any matter arising out of the proceedings in which the order appealed against was passed notwithstanding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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