- (1.) Present appeal filed under Section 260-A of the Income Tax Act, hereinafter referred to as the Act, against the order dated 25th February, 2004 passed by the Income Tax Appellate Tribunal, New Delhi has been admitted on the following substantial questions of law: "(i). Whether on the facts and in the circumstances of the case, view of the Tribunal invoking the provision of section 145(1) on the ground that closing stock has been taken visual inspection, while the closing stock in quantity and closing stock in value has not been disputed by the Assessing Authority is illegal correct and justified (ii).Whether in view of the fact that no defect has been found in the books of accounts and inasmuch as no defect and suppression was found in the manufacturing account maintained by the appellant in the regular course of business, rejection of disclosed result is legally justified (iii).Whether the observation of the Tribunal that CIT (Appeals) has ignored the Smith report is correct based on record while sSmith report has been considered in detail by the CIT (Appeals) and finding in that regard has been recorded (iv).Whether the facts and circumstances of the case, Tribunal is legally justified in distinguishing the burning losses disclosed at 4% in the case of self manufactured ingot and 4% in the case of TISCO Billet (v).Whether in view of the Tribunal allowing burning loss only to the extent of 3% in the case of self manufactured ingot and in case of TISCO Billet @ 2.5% is legally correct and based on any material (vi).Whether the rejection of the burning loss relying upon the Smith Report is legally correct while different situation exists as stated by the CIT (Appeals) in its order -
(2.) The appellant filed an application under section 260A(7) of the Act read with Order XLI Rule 27 of the Civil Procedure Code, 1908 seeking to bring on record the report of the Joint Plant Committee dated 23rd June, 2000 as an additional evidence. The said application was allowed vide order dated 15th May, 2007.
(3.) Briefly stated the facts giving rise to the present appeal are as follows:;