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2016 (8) TMI 1169 - AT - Income TaxAddition made towards excess purchase price paid for ginned cotton - CIT(A) allowing the addition on the ground that the Assessing Officer has not specified defects in the books of account of the assessee - Held that:- Admittedly, in this case, the Assessing Officer has not noticed any mistake in the books of accounts maintained and the tax audit report filed by the assessee. It is an admitted fact that each and every mill has a distinct purchase policy depending upon the products manufactured as well as the end use of the yarn and also the strength and colour. Similarly, the rates of cotton shall vary with the area of the crop as well as the picking of the crop. Moreover, the rate varies with the payment schedule of the mills. Admittedly, the assessee purchased the raw materials on credit basis and made the payment on account payee cheques. For working out the price of ginned cotton, the Assessing Officer has taken the price declared by the Cotton Association of India, which is not applicable to the assessee since the CAI price quoted is for ready money cash price, whereas, the assessee has purchased the materials on credit basis. In the appellate order, the ld. CIT(A) has given a detailed findings over the methodology adopted by the Assessing Officer for estimating the disallowance, which cannot be sustainable, when the Assessing Officer has not disputed the books of accounts and other particulars filed by the assessee. Thus no reason to interfere with the order passed by the ld. CIT(A). - Decided against revenue
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