TMI Blog1972 (12) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 1960, the assessee's stock comprised of the following : Pounds 1. Crude mica 4,12,656 2. Cut mica including splittings 1,46,534 3. Waste rounds 1,98,648 The total quantity of crude mica processed in that year was 25,84,429 pounds. The said crude mica, when processed, yielded during the year : Pounds Cut mica 2,49,398 Splittings 2,105 Waste rounds 5,33,085 -------------- Total 7,84,588 --------------- The total processing cost was Rs. 4,42,465. The cost per pound thus came to 56 paise. The assessee valued crude mica at the mining cost at 45 paise per pound. There is no dispute about this item. Cut mica, splittings and waste rounds were valued at the mining cost plus the processing cost, i.e., at 45 paise plus 56 paise, i.e., at Re. 1.01 per pound. The assessee valued the closing stock at the said rates and arrived at a total value of Rs. 5,34,329. Crude mica of the quantity of 4,12,656 lbs. was valued at the rate of 45 paise per pound at Rs. 1,85,695. For 3,49,192 lbs. of cut mica and waste rounds at the rate of Re. 1.01 per pound at Rs. 3,48,634, the total thus came to Rs. 5,34,329. The Income-tax Officer, however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . To this cost factory expenses amounting to Rs. 4,42,465 were added. The total cost thus arrived at was divided by the quantity of the end products, that is, 7,84,483 lbs. The unit cost of the end product was thus arrived at for the year 1959-60 at Rs. 1.49 and for 1960-61 at Rs. 1.89. The opening and closing stocks were, therefore, valued accordingly and the Tribunal reached the conclusion that, instead of addition of Rs. 99,984 being added as was done by the Income-tax Officer, according to their calculation, a sum of Rs. 10,644 alone has to be added. The appeal was, accordingly, allowed in part. The assessee, thereafter, filed Miscellaneous Application No. 13 of 1969-70. The Tribunal, by its order dated 12th May, 1970, modified its earlier order as it reached the conclusion that there was a mistake in calculating the figures. Before the Tribunal three points were raised in the said petition. The first was that instead of Rs. 1.49 per unit, Rs. 1.75 per unit should have been calculated. The mistake occurred because the total quantity of end products was not accurately kept in view. The second point was that the valuation of the closing stock in regard to cut mica should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stry because of its unique combination of physical, chemical and thermal property, low power loss factor, dielectric constant and dielectric strength. Sheet mica is used in a number of electrical and electronic appliances in different shapes and sizes. The quality of mica for commercial purposes depends largely on the amount of staining, air-inclusions, the degree of flatness and the colour. Prospecting of mica is still a matter of trial and error as no scientific method has so far been evolved for determining with certainty the occurrence of paying mica pegmatite. Accordingly, mines are developed following the veins. The room and pillar method is adopted in mining. The mica obtained from the mine is called "crude mica". It requires a little dressing to remove associated pegmatite dirt as well as defective portions such as buckled, wrinkled and wavy mica. They are rifted away with sickle. Book mica split into a size is called "block mica". Block mica split into thin films of a given thickness is called "mica film" and when they are less than a given thickness they are called "splittings". The labourers engaged in mica mines and factories where mica is hand-dres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the second question. We have already referred to the facts relevant to the question. It would be plain that the answer to this question depends upon determining the scope of the appeal before the Tribunal. Since the present case is governed by the Act of 1922, we have to consider section 33 of that Act. The language of section 33(4) clearly indicates that the Appellate Tribunal may or can pass orders "thereon" on appeal it "as it thinks fit". Although the powers of the Tribunal are thus expressed in very wide language, the word " thereon " restricts the use of such wide powers of the Tribunal to the subject-matter of the appeal. What plainly follows is that the Tribunal's powers are limited to passing such orders as it thinks fit "on the appeal ". In other words, the powers of the Tribunal are limited to the subject-matter of the appeal. The Act has thus left to the parties going up as appellants before the Tribunal to choose and set the scope of their appeal by raising questions arising out of the relevant proceeding. They can limit their attack on the determination of the first appellate authority and seek an intervention of the Tribunal only to the extent they conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the subject-matter of the appeal. The sub-section, after all, is not dealing with the powers of the Appellate Tribunal as such. It is dealing with its powers as an Appellate Tribunal exercising quasi-judicial functions and the order which the Tribunal may make as such. Hence, the Tribunal's decisions must be confined, as in the case of other judicial or quasi-judicial tribunals, to the questions brought before it on the appeal, and it must not travel outside it. It is true that the powers of rectification bestowed on the Commissioner, Income-tax Officer and the Appellate Assistant Commissioner are extended by section 35(2) to the Appellate Tribunal. But this power is exercisable only when there is a mistake in the judgment of the Tribunal. It is of course plain that after the mistake is thus corrected, the Tribunal will have the ancillary power to pass all consequential orders. But this should not be understood to extend the scope of the appeal in disposing of which there appeared some mistake. The error sought to be rectified, through an application under that section, should not be as a result of any fault of the party applying or the conduct of the appeal proceedings, but s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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