TMI Blog2006 (2) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... o be calculated on the basis of the number of days during which the concerned had actually worked double shift or triple shift and the said allowance is not required to be calculated on the basis of the number of days a particular item of machinery or plant had worked double shift or triple shift - - - - - Dated:- 21-2-2006 - Judge(s) : D. K. JAIN., SURYAKANT. JUDGMENT The judgment of the court was delivered by Surya Kant J.-By this petition under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), the Revenue seeks a direction to the Income-tax Appellate Tribunal (for short "the Tribunal"), Amritsar Bench, Amritsar, to state the case and refer the following questions for the opinion of this court which, according to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act was carried out at the business premises and the residential premises of the directors of the assessee-company on July 29, 1988. On examination of the books which were seized by the Department, the Assessing Officer suspected that the purchase of gun metal scraps valuing Rs. 1,48,93,286 from seven parties, accounted for in its account books by the assessee, was shown by it in collusion with those parties. The Assessing Officer accordingly asked the assessee vide its letter dated January 30, 1989, to prove the genuineness of the purchases from M/s. Kohinoor Enterprises and M/s. Swami Enterprises, first two of the seven parties referred to above. The assessee responded vide its letter dated February 8, 1989. The Assessing Officer, however ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee on staff/labour welfare and on account of guest-house expenses, were vacated by the Tribunal. Dissatisfied with the aforementioned order of the Tribunal, the Revenue moved an application under section 256(1) of the Act before the Tribunal to state and refer the three questions of law, which, according to the Revenue, arise for consideration of this court. The Revenue's application under section 256(1) of the Act having been dismissed by the Tribunal, the present petition has been filed. In relation to question No. (iii), reproduced above, Shri D.S. Patwalia, learned counsel for the Revenue, has fairly conceded that the issue is no longer res integra and stands fully answered by the Supreme Court in South India Viscose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment to a very substantial extent. The Tribunal, as a matter of fact, noticed that no sale invoices were found to be undervalued or the purchases inflated, yet the extraordinary profit in respect of goods sold to M/s. Mazagoan Dock Ltd., Bombay, and as recorded in the books of account which ought to have been taken favourably qua the assessee, was considered "adverse" by the Assessing Officer by adopting an erroneous approach. The Tribunal also affirmed the conclusion drawn by the Commissioner of Income-tax (Appeals) that M/s. Kohinoor Enterprises and M/s. Swami Enterprises are existing parties doing business of scrap metal and had vast financial resources at their disposal. Similar conclusion was drawn by it in respect of M/s. S.P. Metal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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