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2018 (11) TMI 1334 - HC - Income TaxAssessment u/s 153A - excess claim of wastage - AO estimated the wastage during the manufacturing process at 0.65%, whereas the assessee's claim was 7.90% - Held that:- Tribunal has discussed in detail the process of refining the crude palm oil and palmolein, by means of re-treatment, bleaching and deodorizing. It is on findings on fact that the A.O's observations, were overturned by the First Appellate Authority and that confirmed by the Tribunal. The Tribunal has found that the reasoning given by the A.O. was a general one and not scientifically based. The statement given by the Production Manager is only regarding a part of the process, and therefore, the additions made on account of wastage was improper. The Tribunal was justified in not agreeing with the A.O.'s determination as to the wastage. We find no reason to interfere with the fact finding of the Tribunal. Estimation of the shortage claimed on transportation - additions made by the A.O. on the basis that there was an excess claim - Held that:- It is observed that the rates are finalised only after negotiations and at the time of booking, the rates are put as it is applicable to good quality oil. Apart from the two rates pointed out by the A.O., there is absolutely no other evidence to substantiate the case of under-invoicing as found by the A.O. The Tribunal has found that crude palm oil was imported from Malaysia and Singapore, through ships and necessarily the oil settled at the bottom is bound to be inferior than the oil at the upper level of the container. It is rightly pointed out that there are no duplicate books maintained with two rates contradicting each other and therefore the C.I.T. (Appeals) and the Tribunal rightly came to the conclusion that the additions made on this count were not appropriate. Suppression of sales by under-invoicing sales to M/s Sulekha Traders - The Tribunal has found that this is an issue identical to that of the Revenue's appeal for the assessment year 2003-04 and for the very same reason the addition on account of under-invoicing was improper and therefore the finding of the First Appellate Authority was overturned by the Tribunal, and rightly so. We find absolutely no reason to interfere with the finding of the Tribunal. - Decided against revenue
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