9911796707
TMI Blog2004 (8) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the tune of Rs. 30,50,700. In view of discrepancies in the stock, a surrender of Rs. 3 lakhs was made on account of profit earned on the unaccounted sales. In view of the admission of the assessee that sales outside the books of account had been made, books of account were rejected. Yield of rice bran oil was taken at the rate of 12.25 per cent., as per the previous year as against the assessee's claim being 11.59 per cent. The Assessing Officer also made addition of Rs. 1,21,699 in respect of purchases made by the assessee. On appeal, the Commissioner of Income-tax (Appeals) held that it will be fair to restrict the yield rate to 11.75 per cent. as against 12.25 per cent. Reference was made to lab examination register containing info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamination record found and seized during search. It is not in dispute that the total rice bran processed by the assessee or extracting the rice bran oil was 8935 MT out of which the assessee has shown 1036 MT of rice bran oil being extracted by the assessee. It is also not in dispute that this lab examination report giving the average yield of 11.90 per cent. by the assessee has been obtained while conducting the lab examination on rice bran of 511.88 MT, which means that this lab examination report is nothing but a sample study conducted by the assessee and not the actual average yield taken on the entire rice bran of 8935 MT processed during the year under consideration, by the assessee, which makes it clear that the average yield record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determining the average yield of rice bran oil actually manufactured by the assessee. Hence, we are of the opinion that the Assessing Officer was perfectly justified in adopting the average yield of rice bran oil extracted by the assessee in the year under consideration, on the basis of yield rate shown by the assessee in the preceding assessment year. It is not disputed that in the preceding assessment year, the assessee has shown the yield rate of 12.17 per cent. and so we are of the opinion that the Assessing Officer was not justified in adopting the yield rate of 12.25 per cent. against 12.17 per cent. shown by the assessee in the preceding year because the Assessing Officer has not given any justifiable basis for adopting this yield ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was in consonance with the seized record and for the period not covered by the seized documents, the records were offered for examination.
From the impugned orders, we find that no reference is made to the records other than the seized documents which are stated to have been produced for examination. We are, therefore, of the view that the records said to have been produced by the assessee ought to be examined by the Assessing Officer for the purpose of determining the yield of oil on the basis of the records of lab. examination for the entire stock of rice bran. For this limited purpose, we remand the matter to the Assessing Officer for passing a fresh order in accordance with law.
The appeal is, accordingly, disposed of. X X X X Extracts X X X X X X X X Extracts X X X X
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