TMI Blog2014 (12) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had made submission about the FCI Web site it was duty of the AO to give a clear finding about it, but he chose to remain silent about it. He had the case records of the assessee of earlier assessment years and he could have easily found as what was the yield for those years. Without referring to the statistics available with him, the AO made the addition. He has not referred to any comparable case that could prove that the stand taken by him about the yield of broken-rice and rice was based on any scientific or logical basis. In short, there was no justification of any kind to hold that the yield shown by the assessee about broken rice and rice was lower as compared to other comparable cases or yield shown in earlier years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 2 % of broken rice yield, that the figure of broken rice had been inflated by 5% resulting short yield of rice which came to 5%(66%-61%), for which the quantity worked out to 6740 Qtl, that the assessee has diverted the 6740 Qtl. of rice to broken rice. The AO calculated the difference between the rates of rice and broken rice at ₹ 1005 per Qtl. and made an addition of ₹ 67. 73 lakhs. 3. Aggrieved by the order of the AO the assessee filed an appeal before the First Appellate Authority(FAA). Before him it was argued that yield taken by the AO was not correct, that FCI had also accepted 25% as broken rice in yield chart, that information was gathered from the website of the FCI, that addition was based on hypothetica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orate the reply of the assessee and rebut it. Principles of natural justice demand that the assessee is entitled to get a reasoned and speaking order. A reasoned order cannot be passed without considering the reply of the assessee filed by the assessee and without giving reasons as to why the reply was not acceptable. Once the assessee had made submission about the FCI Web site it was duty of the AO to give a clear finding about it, but he chose to remain silent about it. He had the case records of the assessee of earlier assessment years and he could have easily found as what was the yield for those years. Without referring to the statistics available with him, the AO made the addition. He has not referred to any comparable case that could ..... X X X X Extracts X X X X X X X X Extracts X X X X
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