TMI Blog2014 (10) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... y mentioned that he has examined copy of the ledger account on packing material, stock record etc. The AO was not able to point out any discrepancy in the claim of the assessee that the cost of finished goods does not include the cost of packing material. In the absence of any adverse finding by the AO, in the remand report, the First Appellate Authority was right in accepting this claim of the assessee.- Decided against revenue Scrap @ 48.93% allowed by CIT(A) - Held that:- In the remand report the AO has, on the issue of generation of scrap, accepted the fact that the assessee has produced complete details of the scrap generated and scrap sold. The AO also obtained necessary confirmations from the parties to whom the scrap was sold. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BER This is an appeal filed by the Revenue directed against the order of the Ld. CIT (A) XXII, New Delhi dt. 19.01.2012 pertaining to the AY 2008- 09. 2. Facts in brief:- The facts of the case are brought out at para 4 of the Ld.CIT(A) s order which is extracted for ready reference. 4. Facts of the case : Appellant is engaged in the business of manufacturing of stainless steel cutleries and utensils in the name and style of M/s Jagdamba Exports. The majority of the products of the appellant are being exported out of India. It has got its manufacturing units at 153, 1 1, EPIP, Kundli, Distt. Sonipat. In the assessment order for the assessment year under consideration, the assessing officer has rejected books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive payment claimed by the assessee. The AO has also disallowed deduction claimed u/s 80IB of the I.T. Act. 2.1. Aggrieved the assessee carried the matter in appeal. The First Appellate Authority called for a Remand Report to verify the contentions of the assessee about maintenance of stock register, production register and details of opening stock and closing stock both quality and quantity wise. The AO gave opportunity to the assessee and thereafter gave a remand report. The assessee filed a rejoinder with the remand report. After considering the remand report and the objections of the assessee, the First Appellate Authority granted relief. 2.2. Aggrieved the Revenue is in appeal before us on the following grounds. 1. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, by accepting the plea of the assessee, in spite of the fact that the assessee did not furnish any details and supporting documents regarding the persons and the purpose of gifts made to them, neither during the assessment proceedings nor during the remand proceedings. 5. Whether on the facts and circumstances of the case the Ld. CIT(A) has erred in deleting the addition made on account of incentive and commission expenses, by accepting the plea of the assessee, in spite of the fact that the assessee did not furnish any proper details, evidence and the supporting documents for the justification of above expenses, neither during the assessment proceedings nor during the remand proceedings. 6. The appellant craves leave to amend o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the finding of the Ld.CIT(A), wherein he allowed 48.93% scrap, as claimed by the assessee. In the remand report the AO has, on the issue of generation of scrap, accepted the fact that the assessee has produced complete details of the scrap generated and scrap sold. The AO also obtained necessary confirmations from the parties to whom the scrap was sold. The AO also accepted the fact that the percentage of scrap fixed by the excise authorities was only, for the purpose of giving incentives to the assessee and has no effect on the actual facts of the case. The assessee had submitted various letters to the excise authorities for revision of the norms of scrap fixed by them. In view of the above observations by the AO in the remand repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ete details with name of the party, quantity, percentage at which this commission/incentive has been paid. Further the appellant has also identified the persons to whom this commission has been paid. The Assessing Officer in the remand proceedings has not been able to find out anything adverse despite the appellant giving complete details except stating that there is no agreement for the same. However, the fact remains that this payment has been made as a matter of commercial expediency and on the basis of export of orders procured by above named persons. I notice that the appellant has been paying this commission every year. During the year it has paid commission of ₹ 9,99,448/-. The disallowance of ₹ 3 lac in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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