Bharatpur Nutritional Products ... vs Cit
2004 Latest Caselaw 779 Del

JUDGMENT

For the assessment year 1986-87 in ITA 4593/Delhi/1994, the Income Tax Appellate Tribunal while deciding the appeal on 30-5-2003, considered that the addition of Rs. 75 lakhs in trading account was on the higher side and thought it to maintain an addition of Rs. 25 lakhs on account of excessive and unverifiable production loss shown by the assessed. The question before this court is:

Whether the findings recorded by the Tribunal in so far as it has maintained an addition of Rs. 25 lakhs is based on any reasons or not?

At the request of the parties we are taking the matter for final disposal today itself.

On behalf of the assessed it is contended that in fact there should be complete deletion of addition as the loss was verifiable and accordingly decision ought to have been rendered in his favor in its entirety. On behalf of the revenue it is contended that there is sufficient material on record to show that the production loss shown by the assessed was excessive and unverifiable. On considering the stock registers it was submitted that the stock registers were not maintained properly and, therefore, the method adopted by the assessing officer ought to have been accepted and addition ought to have been maintained at Rs. 75 lakhs.

However, we find that no reasons are given by the Tribunal while fixing the sum of Rs. 25 lakhs. The Tribunal has not discussed this aspect in any detail and has arrived at a conclusion that it would be fair and reasonable to maintain addition of Rs. 25 lakhs. We feel that this ought to have been considered in detail and a finding ought to have been recorded on the basis of reasons. As such, we remit the matter to the Tribunal, which shall consider the same in detail and thereafter record a finding.

The appeal is accordingly disposed of with the aforesaid direction.