TMI Blog2011 (4) TMI 1509X X X X Extracts X X X X X X X X Extracts X X X X ..... inable. 2. Because, learned Commissioner of Income Tax (Appeals) erred in sustaining the addition on account of estimated excess scrap generation presumed to the tune of 18,382.2 Kg. In total disregard to facts on the record and without any evidence/basis against the assessee. 3. Because, learned Commissioner of Income Tax (Appeals) erred in not appreciating the facts on the record like no defect in audited accounts, day to day stock records like no defect in audited accounts, day to day stock records accepted by excise/trade tax auth. etc is overlooked and absence of quantity details of finished goods is an impossibility as these are sold in numbers. As such, the total addition sustained amounting to ₹ 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,58,362 7,518 0.99% 2004-05 (as discussed above) 9,49,110.5 600 0.06% 3. Referring to these facts, the Assessing Officer has taken scrap generation of 2% of 9,49,110.5 Kgs. of raw material consumed which has been worked out at 18982.2 Kgs and after reducing 600 Kgs. therefrom, the excess scrap generated has been taken at 18382.2 Kgs which has been valued at ₹ 14 per kg. and addition of ₹ 2,57,351/- is made on account of undisclosed scrap and the income of the assessee has been assessed at ₹ 5,15,205/- against returned income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 14 per Kg and, thus, part relief has been given by the CIT (A). The assessee is still aggrieved, hence, in appeal. 5. After narrating the facts, it was submitted by learned AR that the assessee has been maintaining regular books of account. The sales and purchases of the assessee have not been disturbed and, thus, the trading results of the assessee have been accepted by the Assessing Officer. He submitted that the books of account have also not been rejected. In the absence of any defect found in the books of account, the addition made by the Assessing Officer with regard to scrap generation was not justified. He drew our attention to the record maintained by the assessee which, according to him, clearly revealed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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