- (1.) We have heard Sri Ashok Kumar, the learned counsel for the appellant along with Sri Manu Ghildiyal, the learned counsel for the Income Tax Department and Sri V.K. Upadhya, the learned Senior Counsel assisted by Sri Ritvik Upadhya, the learned counsel for the assessee.
(2.) The present appeal has been filed under Section 260-A of the Income Tax Act on the following substantial question of law. (A) "Whether the Tribunal was justified in deleting the disallowance made in the "consumable stores" ? (B) Whether the Tribunal was justified in holding that the expenses attributable on the conveyance and telephone of the Directors of the assessee company should be included in the expenses of the assessee-company?"
(3.) The facts relating to this appeal for the assessment year 2004-05 is that the company under the "profit and loss account" had claimed a sum of Rs.22,06,84,916/- under the head "manufacturing expenses" indicating it as consumable stores. During the course of assessment proceedings, the assessee was directed to file details in respect of the expenses claimed for and also justify them. The Assessing Authority, after examining the matter, came to the conclusion that the bills and vouchers and other supporting documents in relation to various expenses could not be produced. The Assessing Officer also found that no stock register was maintained and therefore balance consumable stores could not be verified.;