9911796707
TMI Blog2012 (12) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee raised following grounds of appeal: "1. The order of the Honourable Commissioner of Income Tax (Appeals) is opposed to law, facts and circumstances of the case. 2. a. Honourable Commissioner of Income tax (Appeals) erred in upholding the action of the Assessing officer in adopting the market value of comparable cases as against the actual sale consideration realized by the appellant by sale of waste. b. Honourable Commissioner of Income tax (Appeals) failed to appreciate that the entire sale of comber noil waste was made by the appellant only to its another entity in the group, namely, M/s. Sri Vasudeva Textiles Limited, which was also subjected to scrutiny for the same assessment year by the very same assessing off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the law is not acceptable except where specific enabling provisiops are made in the Act for taxation of such notional income. 3. Without prejudice to the above, in the alternative, the Honourable Commissioner of Income tax (Appeals) erred in not directing the learned Assessing officer to consider the enhancement of purchase price in the hands of the purchasing company i.e., Sri Vasudeva Textiles Ltd. In view of the above grounds and such other additional grounds which may be adduced at the time of hearing with the leave of the Honourable Income tax Appellate Tribunal, the appellant prays before the Honourable Income tax Appellate Tribunal a) To cancel the order of the Honourable Commissioner of Income tax (Appeals) and to direct Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the assessee admitted for such an addition is contrary to the record. The counsel for the assessee submits that the assessee had admitted for such an addition, there is no reason for the Assessing Officer to make so much of elaborate discussion with figure and analysis for making such an estimated addition on the pretext that there is a difference in sale price of cotton waste compared to the prevailing market price. The counsel for the assessee submits that the Assessing Officer in the assessment order mentioned so many details regarding cotton wastage at various stages of the cotton industry. The Assessing Officer has discussed the details of average realization of wastages prevailing at various stages in Cotton Mills and estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce in sale price of waste compared to the prevailing market price for an estimated addition of Rs..88,06,811/- is made and added to the total income" when factually there was no such admission was made by the assessee. The Commissioner of Income Tax (Appeals) has not dealt with the issue while disposing of this appeal. The Commissioner of Income Tax (Appeals) sustained the addition holding that the concept of revenue neutral cannot be seen from the assessment year alone and it has to be seen from the subsequent years of taxation. The Commissioner of Income Tax (Appeals) further observed that the assessee sold cotton waste to another entity in the group concern M/s. Vasudeva Textiles Ltd. at a lower price than compared to market value. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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