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2012 (11) TMI 232 - ITAT, AHMEDABADG. P. Addition - gross profit of 26.73% in this year as against the gross profit of 30.28% in the immediately preceding assessment year - CIT(A) deleted the addition - Held that:- The gross profit of the assessee in last 5 years was in the range of 25% to 27% with the exception of assessment year 2005-06 where the gross profit was 30.28% followed by a reason on account of order of a particular item which had higher margin and the same was not repeated in the year under consideration. This factual aspect has not been controverted by the revenue by bringing any contrary material on record. Further, during the year under consideration, increase in diesel price and power also contributed to fall in gross profit. The learned CIT(A) has given a finding that the assessee has declared process loss of 10% to 11% consistently - CIT(A) has given a finding that the assessee had maintained day to day stock registers as found during the course of survey proceedings. These factual aspects have also not been controverted by the revenue by bringing any contrary material on record - decided against revenue. Addition on freight and octroi charges - CIT(A) deleted the addition - Held that:- As decided in assessee's own case wherein CIT(A) has distinguished the nature of expenditure with the nature of expenditure which was covered by the agreement with the holding company & the findings given by the CIT(A) that the freight and octroi expenditure claimed by the assessee were incurred on purchase of consumables and stores materials cannot be disturbed - in favour of assessee. Suppressed conversion charges - CIT(A) deleted the addition - Held that:- The issue cannot be decided without complete data as the parties have not furnished the industry-wise loss or the history of the loss for last 4/5 years, the loss incurred during various process, percentage of loss in each process, comparison of such loss in difference processes industrywise and various assessment year-wise & other comparative instances and factors like type of machinery used, claim of manufacturer of machines as to the amount of loss likely to occur when work is done on their machines - restored the matter to the file of the Assessing Officer to affirm the correctness of the assessee’s claim of loss - in favour of revenue for statistical purposes.
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