9911796707
TMI Blog2015 (10) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee that the assessee after aggrieved with the order of assessment dated 21.12.2011 for the assessment year 2009-10 read with order of rectification under section 154 dated 17.02.2012 filed appeal before the ld. CIT(Appeals)-XXX, Kolkata. That the ld. CIT(Appeals) adjudicated the matter vide order dated 31.08.2012, and the copy of order was not directly served to him, i.e. the assessee, rather i t was handed over to the brother-in-law of the assessee while the assessee was under t reatment. The assessee was bed ridden due to Ischemic Heart disease problem and since 07.12.2012 was bed-ridden and was under the care and treatment of Dr. D.D. Kothari till 02.07.2013. The brother-in-law of the assessee, who received the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical mistake in calculation made by the Assessing Officer in the assessment order. Thereafter the assessee preferred appeal before the ld. CIT(Appeals) for the addition of Rs. 8,81,679/- on account of disallowance of shortage of stock by the Assessing Officer of 4349.35 Kg. 6. During the assessment proceedings before the Assessing Officer, the assessee submitted that the nature of business carried on by him, i.e. manufacturing of readymade garments, the basic raw material is hosiery cloth (Than). It is not possible to manufacture 100% of cloth garments out of hosiery than without wastage in cutting of cloth, etc. Defective portion of cloth appears as in regular nature on both the sides of the cloth (Than) and sometimes due to weaving de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case as such nature of readymade garment's business; it is not possible to manufacture 100% of cloth garments out of hosiery than without wastage in cutting of cloth, etc. Mathemati cally one cannot explain without considering the loss of raw materials in the course of processing and/or manufacturing the goods without having considering the shortage. It is quite natural in this type of business. The appellant again submit that due to aforesaid fact, the shortage of raw material is the quite natural. The appellant has already been filed the above submission about the reasons of shortage of closing stock before the ld. AO vide letter dated 15.12.2011, a copy of the same appended herewith. In the aforesaid circumstances you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding disallowance of shortage of 4349.35 kg. claimed by the assessee in the process of making hosiery goods out of grey cloth. Ld. counsel of the assessee has submitted various detail s to justify the claim of the assessee. Copies of various articles as well as technical analysis of the process of manufacturing/processing of grey cloth have been shown, which says that about 5-10% is normal for wastage of cloth. I would like to refer to the Article on Influence of wet processing of properties of single Jersey Knitted Fabrics dated 04.03.2013, which says that the results of dimensional stability analysis of RTS fabric s after repeated washing show that mercerized RTS fabrics has higher length wise shrinkage compared to scoured RTS fabric s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing officer has rightly pointed out that no stock register have been maintained by the assessee for calculation of the shortage. But we cannot ignore the shortage/loss/wastage which normally arises in the process of making hosiery items as discussed above. The assessee has taken the stock at the end of the year and as duly supported for shortage of claim with the tax audit report dated 22.09.2009. The assessee has al so submitted the detail s of quantity of grey cloth received, quantity of processing as well as the shortage arising in the process. Copies of bills from various suppliers of grey cloth have been shown in support of the quantity-wise purchase details submitted by the assessee. 14. I have heard the rival submissions and gone ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
