TMI Blog1976 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as " the Act "), by order dated 10th September, 1975, this court directed the Appellate Tribunal, Cuttack Bench, to state a case and refer the following question for opinion of this court : " Whether, on the facts and circumstances of the case, the Appellate Tribunal without meeting the objections indicated in the orders of the Income-tax Officer and of the Appellate Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny of audit ; (ii) correlation between consumption of raw materials and production was not possible in the absence of a manufacturing account and, therefore, the book profit could not be accepted ; (iii) conversion of finished goods into weight had not been recorded and made available for verification ; (iv) enquiries have been made under section 133 of the Act through an inspector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... careful examination of the appellate order of the Tribunal does not show that the defects, indicated by the Income-tax Officer leading to rejection of the accounts were indeed examined appropriately. He further submits that except that reasons had been advanced to meet the contentions of the Income-tax Officer, there is no indication in the appellate order that the learned Member looked into the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... catalogued appropriately for the first time by the Tribunal which certainly would mean that the Tribunal was alive to the defects noticed by the Income-tax Officer and a review of the decision shows that all the points have been met. Having read the appellate order closely we are of the view that the grievance made by the learned standing counsel is well justified. As in our view justice of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us by saying : " On the facts and in the circumstances of the case, the Appellate Tribunal was not justified in coming to the conclusion that the accounts were flawless, particularly when the objections indicated in the order of the Income-tax Officer had not been answered. " Our answering the question in such a way necessarily would lead to a fresh hearing of the appeal and we would commend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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