CIT Vs. A.K. LABORATORIES LTD.

JUDGEMENT

(1.) INSTANT income -tax appeal under section 260A of the Income Tax Act, 1961 (for short, Income Tax Act) is directed against the order of the Income -tax Appellate Tribunal, Jaipur Bench, Jaipur (for short, Tribunal) dt. 26 -10 -2007 for the assessment year 1997 -98.

(2.) BRIEF facts, as emerging on the face of record, are that the respondent -assessee is a limited company and submitted a return declaring a loss of Rs. 35,32,320 on 22 -9 -1997. The respondent -assessee is engaged in the production of drugs namely, 6APA, ATH and Ampicilin Anhydrate.

(3.) DISSATISFIED with the above addition, the matter was carried in appeal before the Commissioner (Appeals), Alwar before whom a certificate was produced of Versa Project Consultancy & Services with regard to the consumption of IPA in production of ATH and it was opined by the said consultancy services that the loss of consumption is only 0.2 per cent, therefore, it is within the tolerable limit, other arguments were raised and it was submitted that no addition is required to be made. Since the certificate came to be filed before the first appellate authority, the Commissioner (Appeals) sent copy of the same for the comments of the assessing officer under rule 46A of the Rules and after considering the objections, the Commissioner (Appeals) reduced the addition from Rs. 12 lacs to Rs. 4.5 lacs and that was also on estimate basis.