TMI Blog2016 (6) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... condition precedent as to incurring of the expenditure must be conclusively established by cogent material on record. We are of the opinion that the question in this regard is required to be answered in favour of the assessee and against the revenue. Addition made in respect of salt washing loss - Held that:- The Tribunal 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 cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 1989-90 1279/07 28.02.2007 1681/Ahd/2000 1991-92 1280/07 28.02.2007 1682/Ahd/2000 1992-93 1281/07 28.02.2007 1683/Ahd/2000 1993-94 1282/07 28.02.2007 1684/Ahd/2000 1994-95 1283/07 28.02.2007 1702/Ahd/2000 1991-92 1284/07 28.02.2007 1703/Ahd/2000 1992-93 1285/07 28.02.2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentation articles/gifts which was made by the Assessing Officer on the ground that the expenditure was for non-business purpose, and not invoking the provisions of Rule 6B of the Rules? Tax Appeal No. 1283 of 2007 to Tax Appeal No. 1286 of 2007 Whether the Appellate Tribunal is right in law and on facts in deleting the addition made in respect of salt washing loss? 3. The Assessing Officer made addition in respect of unexplained transportation cost observing that the assessee being manufacturer of soda ash had required coal to run its boilers. It used to purchase coal from Eastern Coalfields Ltd (SECL) located in the interior parts of Madhya Pradesh, Bihar and Orissa. On cross verification with the General Manager of SE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounted investment in the purchase of coal was upheld by the Tribunal and therefore the addition in respect of transportation was also required to be upheld on the same analogy. He submitted that the Tribunal upheld the addition in respect of the unaccounted purchase of coal by the assessee after rejecting the assessee s unbelievable story held that somebody had taken away 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 coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll for any interference by this Court. He submitted that the Assessing Officer could not prove that the transport expenses were incurred 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 rainfall, heap size and location, frequency of rain and continuity of rain etc are required to be taken into consideration and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 salt loss. It is required to be noted that in the year 1990-91 the assessee had not supplied cogent materials substantiating its claim and therefore the loss was disallowed which is evident from the decision rendered by this Court in Tax Appeal No. 5 of 2004. We are of the view that the Tribunal is justified in disallowing the salt washing loss. We accordingly answer the said quest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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