TMI Blog2018 (9) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing units, which could not be produced due to Telangana agitation. Invoices and details relating to purchases etc. were produced. The issue would be whether and what documents and papers in respect of the purchases were produced before the Assessing Officer as held by the Commissioner of Income Tax (Appeals) or the findings and observations of the Assessing Officer were justified. Our aforesaid decision would equally apply to the question of claim of depreciation on bottles and tetra packs, which were disallowed by the Assessing Officer. The question of law is partly answered in favour of the appellant-assessee and partly answered in favour of the respondent-Revenue. We uphold the order of remand passed by the Tribunal in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the appellant-assessee submits that they are not disputing and challenging the order of remand in respect of operating expenses, but would challenge the order of remand in respect of disallowance of unverified purchases from related parties under Section 40A(2)(b) of the Act, disallowance of unverified fixed assets and disallowance of depreciation. It is submitted that the order of remand on the said questions and issues was not necessary as entire facts and details were available on record. It is also submitted that the Tribunal has incorrectly and erroneously recorded that the appellant-assessee had not produced books of accounts and our attention was drawn to the order sheet entry dated 10th December, 2009 by which the appellant-assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets, and depreciation on bottles and crates to the Assessing Officer for a fresh adjudication. 7. The Assessing Officer vide assessment order dated 30th December, 2009 had made four separate and specific additions on account of operating expenses, unverified purchases from related parties, unverified fixed assets and had partially disallowed the claim for depreciation. Paragraph 2 of the assessment order specifically records that the books of accounts were not produced during the course of the assessment proceedings. Disallowance on account of operating expenses was made observing that the assessee had not produced books of accounts and, therefore, 30% of the expenses incurred should be disallowed being unverified, unreasonable and ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of ₹ 10,61,30,515/- was made. 9. The Commissioner of Income Tax (Appeals) had deleted the addition observing that the calculations made by the Assessing Officer were incorrect for he had not included the indirect cost, which if added, would reflect that the appellant had incurred manufacturing cost of ₹ 112.23 approximately per case and not ₹ 38.70 per case. Thus, the method of calculation adopted by the Assessing Officer was incorrect. 10. During the course of hearing before us, it was submitted by the Revenue with justification that the direction for remand in respect of unverified purchases from related parties and the operating expenses were interconnected and interlaced, as indirect cost would include opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided. 14. We find and observe that the Tribunal has not specifically considered and dealt with the contention and pleas raised by the appellant/assessee while remanding the case on the two aspects relating to addition to fixed assets and purchases of bottles etc. Observation of the Tribunal that the appellant-assessee had not produced books of accounts is seriously disputed and contested by the appellant-assessee. It is stated and claimed that they had produced books of accounts, except books of accounts relating to the manufacturing units, which could not be produced due to Telangana agitation. Invoices and details relating to purchases etc. were produced. The issue would be whether and what documents and papers in respect of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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