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2018 (4) TMI 1416 - AT - Income TaxValidity of assessment - no notice served u/s 143(2) within the period of limitation - Held that:- As theory of service through affixture was an afterthought and manipulated by the A.O. There was no evidence on record to prove that assessee has been served with the notice under section 143(2) within the period of limitation and the alleged service of the notice through affixture is invalid and void abinitio itself. Since no notice under section 143(2) have been served upon the assessee within the statutory period, therefore, the same is invalid, consequently, the assessment order gets vitiated and is null and void. - Decided in favour of assessee. Disallowance of deduction claimed u/s 10B - proof of manufacturing activities undertaken by assessee - Held that:- The assessee produced sufficient documentary evidences before Ld. CIT(A) to prove that it manufactures hot mix masala and exports them and claimed exemption under section 10B of the I.T. Act. The claim of assessee is supported by documentary evidences as well as excise records checked by the Excise Authorities. The A.O. in the remand report admitted that the documents submitted by the assessee before Ld. CIT(A) were evident that manufacturing was being done at the premises of the assessee. Admission of the A.O. that assessee is manufacturing hot mix masala and thereafter, it is exported by assessee, supported by documents, the Ld. CIT(A) correctly deleted the addition. - Decided in favour of assessee. Addition on waste of 46401 kg not proved - Held that:- The excise records have been checked and verified by the Excise Authorities. CIT(A) found that assessee has maintained the in-put stock register and stock register of the finished goods. Therefore, there were no justification to disbelieve the wastage claimed by the assessee. A.O. did not reject the books of account of the assessee and has not pointed out any of the specific defects in the books of account and records maintained by assessee. The assessee explained that there is a natural loss in the process of production of hot mix masala which is supported by laboratory report. Also there is no evidence on record to prove any sales made by assessee outside the books of account.- Decided in favour of assessee.
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