TMI Blog2009 (12) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... t of disallowance of freight and octroi expenses. 3 The Ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in deleting the addition made of ₹ 74,46,147/- being the difference in the amount of conversion charges credited in he Profit and Loss account of the assessee and the payment of conversion charges as stated in the Tax Audit Report of the principal i.e. AIA Engineering Limited. 4 The Ld. CIT(A)-XI, Ahmedabad has erred in law and on facts in deleting the addition of ₹ 90,92,580/- the undisclosed conversion charges on account of claiming excess burning loss. 5 On the facts and in the circumstances of the case, the Ld. CIT(A)- XI, Ahmedabad ought to have upheld the order of the Assessing Officer. 6 It is therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lfilled. He accordingly denied the claim of ₹ 20,81,061/- made u/s 80IA of the Act. 3 The learned CIT(A) allowed the claim on the ground that the facts and circumstances in assessee s case have not been changed since 1994-95, it is engaged in the manufacturing the castings on job work basis, under the same conditions as earlier, the assessee has filed the Audit Report in correct Form before completion of assessment, and merely because the said Report was not enclosed with the return, deduction u/s 80IA could not be denied. 4 We have heard the learned DR and the learned AR. The learned DR basically relied on the order of the AO. On the other hand, the learned AR submitted that the issue is covered in favour of the assessee by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory nor on finished goods sent to the principal. The expenditure so claimed is with regard to stores materials and consumables while manufacturing castings. During the year under consideration, the assessee purchased stores and consumables at ₹ 59,46,629/- which included materials like refectories, ramming mass etc. which involved higher freight. The assessee was also required to pay octroi on such purchases. Since the addition made by the AO was without pointing out as to in respect of which raw material or finished goods the assessee has incurred freight and octroi expenses, the learned CIT(A) deleted the addition. 7 We have heard the learned DR and the learned AR. The learned DR basically relied on the order of the AO an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges. The issue of TDS certificate matches with the figure shown by the assessee in its books. Once necessary corrections have been carried out by the principal, there is no case for making addition. It was accordingly deleted. 10 We have heard the learned DR and the learned AR. It is not pointed out by the Revenue that the assessee has claimed in its Profit Loss Account a sum of ₹ 14,32,86,972/ and accordingly the profits have been stated in the return. Once necessary corrections have been carried out and as pointed out by the learned AR that the return has been filed on the basis of corrected figures, then there is no case for presumpt ion that the assessee is entitled for the higher conversion charges on the basis of Audit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered view, the issue can not decided without complete data. The parties have not furnished the industry-wise loss or the history of the loss in the case of the assessee for last 4/5 years, the loss incurred during various process undertaken by the assessee, percentage of loss in each process undertaken by the assessee, comparison of such loss in different processes industrywise and various assessment year-wise in case of the assessee, other comparative instances, the reasons for incurring loss and other factors such as 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. Accordingly, we restore this issue to the file of the AO for examining it afresh. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
