9911796707
TMI Blog2023 (2) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006-07. This appeal was admitted on 25th January, 2011 on the following substantial questions of law: "(a) Whether the Tribunal below committed substantial error of law in ignoring the evidence as regards leather consumption and production of finished goods in its record and also forming part of the assessment record which was before the Commissioner of Income Tax (Appeals) on the ground of non-submission of such evidence before the Commissioner of Income Tax (Appeals) which was unnecessary. (b) Whether the Tribunal below committed substantial error of law in estimating the production/sale of finished goods on the basis of its order for assessment year 2004-05, which is the subject matter of challenge before this Court in ITA No. 781 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irregularity in respect of consumption of finished leather and resultant production of finished goods. Accordingly, a show cause notice dated 28th November, 2008 was issued to the assessee. The assessee with regard to the quantitative details of stock stated that the consumption of raw materials depends on the quality of leather items produced. Further, it was stated that during the year under review, mostly old stocks have been used, most of the items produced are of various shapes in which case there was heavy wastage. The assessing officer as could be seen from the assessment order dated 30th December, 2008 does not examine the documents and details furnished by the assessee but largely was guided by the figures relating to the leather c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 with regard to the quantitative details of stock. The assessee's specific case was that from the materials already produced before the assessing officer it is clear that the consumption of raw materials would depend on the quality of leather and items produced and that during the year under review they had used old stock and most of the items are small things of various shapes in which case there was heavy wastage. If such stand of the assessee is not disputed by the assessing officer that the assessee had produced details including quantitative details of stock of finished leather and raw materials consumption of the same and details of production, the assessing officer was duty bound to examine those details and documents and come t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are produced for each assessment year which largely depends upon the orders which were placed by the assessee by overseas customers, the assessing officer was bound to consider those details as it is elementary principle that each assessment year is an independent unit. The learned tribunal also ignored this fact and was persuaded by the opinion drawn by the CIT(A) which had approved the estimation done by the assessing officer purely based upon the figures for the earlier assessment years and not in respect of the assessment year under consideration. It might have been a different case had the details and documents furnished by the assessee been examined and found to be incorrect or otherwise and thereafter the assessing officer embarked u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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