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2012 (10) TMI 511 - AT - Income TaxInvisible loss - Process Loss - Assessee had made a claim for “staking loss” in the process of consumption of cotton – AO made addition for the loss in the respective assessment years - Assessee had worked out the raw material consumption based on the opening quantities, purchased quantities and closing quantities – Held that:- Consumption in excess of industrial norms could be due to production efficiency or inefficiency levels of the units. There is no rule that every unit manufacturing cotton yarn should have same standard of production. None of these factors were considered by the lower authorities. Issue remit back to the file of AO to compare it with industrial standards and corroborate it with further evidence if at all any adverse conclusion is to be drawn on the consumption of material claimed by the assessee. Issue remand back to AO
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