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2016 (6) TMI 1039 - GUJARAT HIGH COURT

2016 (6) TMI 1039 - GUJARAT HIGH COURT - TMI - Addition of unexplained transportation cost of coal - Held that:- The Tribunal has held that if the claim of the Assessing Officer that such unaccounted coal is sold by the assessee, then the transportation cost is usually borne by the person who has purchased the coal and it is not the assessee who incurred such expenditure. We agree with the said finding. In support of the additions of transport expenses nothing has been brought on record by the A .....

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nal in the present case has gone into the details of the method and procedure and come to the conclusion that the loss claimed by the assessee is required to be allowed. We have also considered the fact that Central Salt & Marine Chemical Research Institute which is an authorised institution on this subject has certified the salt loss to be up to 10%. The Insurance Company has also recognized the salt loss while settling claims of the parties and the Superintendent of Salt has also approved the .....

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essee - TAX APPEAL NO. 1277 of 2007 With TAX APPEAL NO. 1279 of 2007 TO TAX APPEAL NO. 1286 of 2007 - Dated:- 17-6-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR MR BHATT, SENIOR ADVOCATE WITH MRS MAUNA M BHATT, ADVOCATE FOR THE OPPONENT : MR SN SOPARKAR, SENIOR ADVOCATE WITH MR. BS SOPARKAR, ADVOCATE FOR MRS SWATI SOPARKAR, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. Being aggrieved and dissatisfied with the impugned judgment and order passed by the .....

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007 1703/Ahd/2000 1992-93 1285/07 28.02.2007 1704/Ahd/2000 1993-94 1286/07 28.02.2007 1705/Ahd/2000 1994-95 2. These matters were admitted by this Court for consideration of the following substantial question of law: Tax Appeal No. 1277 of 2007 Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) deleting the addition made on account of unexplained transportation cost of coal, particularly when the Tribunal itself confirmed the addition in resp .....

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spect of salt washing loss? Tax Appeal No. 1280 of 2007 to Tax Appeal No. 1282 of 2007 (A) Whether the Appellate Tribunal is right in law and on facts in deleting the addition made in respect of salt washing loss? (B) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) deleting the disallowance made in respect of the expenditure incurred for the presentation articles/gifts which was made by the Assessing Officer on the ground that the expendit .....

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lds Ltd (SECL) located in the interior parts of Madhya Pradesh, Bihar and Orissa. On cross verification with the General Manager of SECL, it was found that the assessee had not accounted for part purchase of total coal purchase. The Assessing Officer made addition of the value of coal and transportation charges. The Assessing Officer also came to the conclusion that the assessee had sold coal at a premium and therefore the Assessing Officer adopted the rate of premium at 20% based upon his marke .....

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essing Officer to follow his decision in the assessee s own case for assessment year 1990-91 3.1 On appeal before the Tribunal by the revenue, by impugned judgment and orders, Tribunal confirmed the findings of the CIT(A). The Tribunal also deted the addition shown for salt washing loss. Being aggrieved and dissatisfied with the impugned orders passed by the Tribunal, the revenue has preferred the present Tax Appeals for consideration of the aforesaid substantial question of law. 4. Mr. Manish B .....

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ay and used letterheads without the knowledge of the assessee particularly in absence of any evidence in this regard. He submitted that when the said addition in respect of unaccounted purchase was confirmed by the Tribunal and the factum of it being sold at 8% premium without reflecting in the books of account, it was quite logical that the coal had been lifted from the colliery and transported to the place of coal used by the assessee itself. He submitted that without transportation the purcha .....

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his estimation of premium at the rate of 20% was based on such market information and appropriate certificate. 4.2 Mr. Bhatt further submitted that the Tribunal erred in not appreciating that the facts so far as the salt washing loss is concerned, were similar to the case of the assessee for assessment year 1990-91 wherein the Tribunal has held against the assessee which was challenged by the assessee by way of Tax Appeal before this Court being Tax Appeal No. 5 of 2004 wherein this Court has di .....

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urred by the assesee. He submitted that the Tribunal after considering the various aspects of the case has deleted the addition in respect of salt washing loss. He has also drawn the attention of this Court page 7 of Tax Appeal No. 5 of 2004 which is for the assessment year 1990-91 and submitted that it is pertinent to note that the loss for the year in question in Tax Appeal No. 5 of 2004 was actually on the basis of estimate. He submitted that the factors such as rain, total density of rainfal .....

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that such unaccounted coal is sold by the assessee, then the transportation cost is usually borne by the person who has purchased the coal and it is not the assessee who incurred such expenditure. We agree with the said finding. In support of the additions of transport expenses nothing has been brought on record by the Assessing Officer. It is required to be noted that Section 69 is attracted where an assessee incurs any expenditure, the source of which he cannot explain satisfactorily. The cond .....

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