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2014 (12) TMI 1402 - AT - Income TaxClaim for conversion / manufacturing loss - appellant's claim for conversion / manufacturing loss to the extent of 5 per cent only - HELD THAT:- We find that it is not in dispute that the trading result disclosed by the assessee is fully supported by the books of accounts and stock register. No defect in the regularly maintained books of accounts of the assessee could be pointed out by the Revenue. The quantum of weight loss in manufacturing by itself even when the same is more than others does not empower the Revenue to make addition unless some defect in the books of accounts of the assessee is found. The excess loss suffered by the assessee may provide a ground to the Revenue to investigate the fact properly but that by itself does not empower to disallow genuine loss when no defect in the books of accounts is found. Thus, in our considered opinion, the addition confirmed by the CIT(A) is not sustainable on the facts of the instant case. We, therefore, delete the addition and allow this ground of appeal of the assessee.
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