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2014 (1) TMI 845 - AT - Income TaxDeletion of disallowance made on account of restriction of claim of waste/scrap & loss – Melting process involved in the manufacture or not – Held that:- The Assessing Officer has rejected the book results of the Assessee mainly for the reason that the Assessee did not produce the prescribed cost records though it was mandatorily required to maintain the same - From the covering letter addressed to the Assessing Officer by the Assessee it is seen that the Assessee had furnished the details called for by the Assessing Officer - CIT(A) has also noted that all the relevant records in respect of scrap generation and burning loss, daily production records, Excise record along with month wise summary of consumption, production data was furnished before Assessing Officer but the Assessing Officer could not find any discrepancy in the details submitted by the Assessee. Even the scrap percentage and process loss percentage are comparable with the earlier years - the Assessee had produced excise record and production record for verification before Assessing Officer and before him - Assessing Officer has not pinpointed any specific defect in the books of account of the Assessee – thus, CIT(A) was justified in holding that there was no basis for the Assessing Officer to reject the waste/scrap claimed by the Assessee and estimate the generation of scrap at 5% of material consumed and production loss at 1% of the total production - The Assessee had failed to produce cost records which it was statutorily required to maintain but the same was neither produced before Assessing Officer or CIT(A) though the Assessee claims that the various records prescribed have been maintained by it - The Assessee has not given any valid justification for not producing the aforesaid records for verification though it claimed to have maintained the same – Decided partly in favour of Assessee.
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