SAUMITRA DAYAL SINGH, J. - (1.) This Income Tax Appeal filed by the Revenue under Section 260-A of the Income Tax Act for the Assessment year 2006-07 arises from the order of the Income Tax Appellate Tribunal, Lucknow Bench "A", Lucknow dated 6.10.2015 whereby the tribunal has allowed the assessee's appeal and deleted the addition of Rs. 1,84,00,096/- on account of valuation of closing stock of sugar. The tribunal accepted the case of the assessee that there was no need to make any addition on account of valuation closing stock of sugar as it has correctly valued the closing stock of sugar at a lower rate, the stock being of levy sugar and not of free sale sugar which rate had been applied by the Assessing Authority while making the original assessment.
(2.) The appeal was admitted on the following questions of law:- "(A) Whether on the facts and in the circumstances of the case, the learned ITAT is justified in deleting the addition of Rs. 1,84,00,096/- on account of valuation of closing stock of sugar as made by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals) ignoring the fact that the assessee failed to produce stock registers and supporting evidences in support of applying different rates for valuation of stock for levy and free sale sugar relating to different years during the course of assessment proceeding. (B) Whether on the facts and in the circumstances of the case, the learned ITAT was legally justified in ignoring the production of the stock register and supporting evidences while allowing the appeal filed by the assessee or accepting the claim of the assessee."
(3.) Brief facts of the case are that the return of income was filed by the assessee showing net loss of Rs. 6,86,55,130/- on 16.10.2006. The Assessment was completed u/s 143(3) of the I.T. Act, 1961 on 18.12.2007 on a total income of Rs. Nil setting off the losses for the Assessment Year 2002-03 by making the addition/disallowance on account of valuation of closing stock Rs. 1,84,00,096/-;