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2018 (1) TMI 1153 - ITAT JAIPURTrading addition - shortage / excess of the goods - independent inquiry on the basis of the information received from the Central Excise Department - Held that:- The basis of making addition by the Assessing Officer was that during the survey operation, the Central Excise Department found there was excess of raw material. It is the contention of the assessee that the ld. CIT(A) has not taken into consideration the fact that some scrap was generated during the manufacturing process, which gave difference between the raw material and finished goods. As assessee has contended that the first appellate authority under the Central Excise Act i.e. Commissioner of Appeal-1, Central Excise vide order dated 02/1/2013 has given a finding that there was no sufficient material on record to establish clandestine removal on clearance by the appellant. It is stated by the assessee that on the date of survey, actual production of MS Bars was 29668.220 MT whereas consumption of MS Ingots was 31781.160 MT resulting into burning loss of 1015.810 MT, scrap generation of 1018.865 MT and mis roll of 78.265 MT. We find that this fact is not considered by the ld. CIT(A) while deciding this issue. Had the ld. CIT(A) taken into account this fact that this addition would not have been sustained. - Decided against revenue.
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