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2016 (8) TMI 1432 - ITAT DELHIAddition on account of bogus creditors - non-production of books of account at the time of assessment proceedings - HELD THAT:- The assessee has discharged its onus in respect of credit and the Assessing Officer has not raised any doubt in respect of the purchase from the said creditor. The identity of the said party has also been verified. The assessee has submitted the explanation for the inconsistency appearing in the ledger accounts of the parties in their respective books of account. If the Assessing Officer was not satisfied, he should have carried out further enquiries from M/s. Triveni Engineering and Industries Ltd. or from M/s. Bindal Papers Ltd., which he did not. According to us, the assessee cannot not be allowed to suffer because of no action taken on the part of the Assessing Officer for verification. In our view, the assessee has submitted evidences necessary to shift the onus to the Revenue and, therefore, no addition is warranted in the case of the assessee for unexplained credit. In view of above, we hold that the learned Commissioner of Income Tax (Appeals) has passed a reasoned order on the issue in dispute and there is no infirmity in his findings on the issue in dispute. Accordingly, this ground of appeal is dismissed. Addition of increase in chemical expenses - HELD THAT:- Assessing Officer has neither been able to point out any discrepancy in the bills vouchers etc maintained by the assessee in respect of the expense as also not been able to find out any discrepancy in the records of consumption of the chemicals maintained as per the Central excise rules. The assessee has duly explained the reason for increase in consumption alongwith evidences of increase in cost of chemicals, changed method of production etc. In such circumstances, in our opinion, the ad hoc disallowances cannot be sustained. In view of the above discussion, we hold that order of the Ld. Commissioner of Income-tax (Appeals) on the issue in dispute is well reasoned and no further interference is required from our side, accordingly we confirm the finding of the learned Commissioner of Income-tax (Appeals) on the issue in dispute. The ground of the appeal is dismissed. Estimating the sale of scraps - AO estimated the sale of the scrap at the rate of 2% on the consumption of stores and spares - HELD THAT:- We find that the addition in reference was made without pointing out any discrepancy in bills and vouchers and consumption of stores and spares. Further, the Revenue has not been able to substantiate before us with the annual results of M/s. Ganga Kisan Sahakari Chini Mills Ltd. for assessment year 2008-09 that its result are comparable with the result of the assessee and in absence of which, the rate of scrap estimated in that case, cannot be applied over the case of the assessee. In our view, the estimate of sale of scrap upheld by the Commissioner of Income-tax (Appeals) is reasonable and no further interference on our part is required. Accordingly we uphold the finding of the Commissioner of Income-tax (Appeals) on the issue in dispute. The ground of the appeal is dismissed.
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