TMI Blog2015 (10) TMI 2490X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted by Finance (No.2) Act, 2004, thus, the Assessing Officer is directed to examine the claim of the assessee whether the said amount has been included as income of the payee. Suppression of sales - Addition on process loss - Held that:- The Assessing Officer noticed that Tijiya Steel debited the amount of commission on sale of 400 kgs ascorbic acid vide letter dated 15/08/2008 and 1000 kgs on 12/08/2008, whereas, in the case of standard pharmaceutical, 500 kgs in the month of August and 750 kgs in the month of September. The assessee did not show any purchases in the month of August and September of ascorbic acid. The Assessing Officer found defects in the books of accounts as there was suppression of sales in comparison to raw m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri C.N.Vaze For the Respondent : Shri Randhir Gupta O R D E R Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 30/12/2011 of the ld. First Appellate Authority, Mumbai. Ground no. 1, 3 and 6 out of the grounds of appeal were not pressed by the ld. counsel for the assessee, Shri C.N. Vaze, therefore, these grounds are dismissed as not pressed. 2. The next ground i.e. no. 2, pertains to disallowing service charges paid for procurement of raw material amounting to ₹ 19,36,700/- on the ground that no TDS was deducted from the said amount. The crux of argument advanced on behalf of the assessee is that certificate of accountant was furnished by the assessee (pages 94 to 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppressed. The ld. counsel for the assessee, challenged the addition firstly on the plea that proper opportunity of being heard was not provided to the assessee and secondly it was contended that there was no suppressed sale. On the other hand, the ld. DR, defended the conclusion arrived at in the impugned order. 3.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee showed consumption of raw materials to the tune of 3,15,096.88 Kgs., whereas, the finished goods were only 2,27,508 kgms. The Assessing Officer asked the loss of 87588 kgms. Of raw material in comparison to finished goods. In earlier year, the loss was 3 to 10% only whereas in the present assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ascorbic acid. The Assessing Officer found defects in the books of accounts as there was suppression of sales in comparison to raw material purchased, therefore, the books were rejected, being, found unreliable. From the quantity details filed by the assessed, there is a clear difference/shortage of material. Even the assessee admitted before the Assessing Officer that there was shortage of the yield/end product as has been discussed at page-5 of the assessment order. Therefore, we find no infirmity in the conclusion drawn by the ld. Commissioner of Income Tax (Appeals) and the factual finding recorded in the assessment order. So far as, the contention of the ld. counsel for the assessee that proper opportunity was provided to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
