9911796707
TMI Blog2016 (7) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... days. The assessee has filed an application for condonation of delay wherein it has pleaded that the acknowledgement-cum-notice was served upon the respondent-company at its old address and due to that it could not lay its hand on this notice in reasonable time. It has resulted the filing of the CO time-barred by seven days. After considering the application of the assessee, we condone the delay in filing of the CO and proceed to decide the appeal as well as CO on merit. 4. In the first ground of appeal, the Revenue has pleaded that the CIT(A) has erred in deleing the addition of Rs. 60,22,234/-. 5. Brief facts of the case are that the assessee has filed its return of income on 27.10.2007 declaring total income at Rs. 7,26,66,963/-. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmation in respect of all parties to whom scrap is stated to be sold. The assessee could not produce confirmation in respect of the following two parties out of total 21 parties. 1. M/s.Tube Man - Scrap sales Rs. 820320 for 35770 of Stainless/Carbon Steel Tubes. 2. M/s.Tube Inc Corporation - Scrap sales Rs. 608788 for 18440 Kgs of Stainless/Carbon Steel Tubes. Further, summons u/s.131 were issued by A.O to some of the Scrap Sale Parties. In response to the summons, the parties appeared before A.O and furnished the details called for. However, no one appeared on behalf of M/s.Deepak Steel at Chattral, Dist. Gandhi Nagar. The assessee has submitted the ledger copies and bills of all scrap parties during assessment proceedings . The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Geremanisher Llyod is a reputed internationally recognized Certification Agency of Pipes and Tubes Industry. They personally visited the plant of appellant company on 23/2/2009 and after due verification of the different process have issued the certificate regarding burning losses and scrap generation in manufacturing process of the appellant company. The copy of said certificate was submitted before the A.O for his perusal. The certificate issued by M/s. Germanisher Llyod, establish that the process loss and scrap generation of the appellant company as shown in the audited books of accounts is. true and correct. The books of accounts of the appellant are audited under the Companies Act as well as under the Income Tax Act and the Aud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to delete the same. As such, the appellant gets relief of Rs. 60,22,234/-." 7. With the assistance of the ld.representatives, we have gone through the record carefully. A perusal of the assessment order, we find that the AO failed to bring any evidence on record which can suggest suppression of sales made by the assessee. The assessee was showing an income of more than Rs. 7 crores in its return. It could not file confirmation from two scrap purchases having value roughly of Rs. 40 lakhs only. The ld.AO has calculated this aspect in such manner suggesting that the assessee has sold finished goods, but there is no evidence with the AO to that effect. We failed to understand on what basis the AO has drawn this inference. On the other ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT Vs. CIT V/s Corretech Engineering (P) Ltd, 372 ITR 97 has held that if no exempt income is there during the year, no disallowance under section 14A can be made. Similarly, Rule 8D was not applicable in the Asstt.Year 2007-08. The Hon'ble Delhi High Court in the case of Maxo Maxopp Investment Ltd. vs. CIT, 347 ITR 272 and the Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. 328 ITR 81 has held that Rule 8D cannot be applied with retrospective effect. It is applicable from the Asstt.Year 2008-09. Therefore, no disallowance can be on the basis of Rule 8D. In view of the above discussion, the ground raised by the Revenue is rejected. 11. In the result, the appeal of the Revenue is dismissed. 12. So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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