TMI Blog2023 (2) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... and its valuation with depreciative cogent material on record leaves the computation made by the Ld. AO doubtless, thus finds force in taxing the same as revenue from suppressed sales. And the said action of Ld. TAB finds force in the light of judgement of Hon ble Supreme Court in CIT Vs British Paints India Ltd. [1990 (12) TMI 2 - SUPREME COURT] wherein held tha where accounts are prepared without disclosing the real cost of the stock-in-trade, albeit on sound expert advice in the interest of efficient administration of the company, it is the duty of the ITO to determine the taxable income by making such computation as he thinks fit. We see no reasons to interfere with the action of the Ld. TAB in bringing to tax the revenue from su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of assessee. Such bagasse bailing expenses are low cost have many ingredients hence cannot be used for comparison. The appellant craves leave to add, alter, amend or revise the above grounds of appeal at the time of hearing of the above appeal. 2. The grounds raised in the present appeal are inconsonance with rule 8 of the Income Tax Appellate Tribunal Rules, 1963 [for short ITAT-Rules ], for the reason it shall suffice to articulate that, the sole and substantive ground in the extant appeal revolves alleging around impugned addition of excess bagasse stock without appreciating the regular method of valuation followed by the appellant. 3. Briefly stated facts of the case are; 3.1 The appellant assessee is a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee could get partial relief and for the balance addition confirmed by the Ld. FAA, the appellant brought up the matter before the Tribunal on the grounds laid at para 1) hereinbefore. 4. When case was called up at pre-scheduled physical hearing, none represented the assessee, mindful to the conduct of the appellant showing no appearance on many occasions and to rest elongated adjudication, in the interest of justice we proceed to adjudicate the matter following rule 24 of the ITAT-Rules, which empowers the Tribunal to decide the appeal ex parte on merits where appellant does not appear in person or through its authorised representative and the same is done placing on record a no-objection from the respondent revenue. It is needle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We note that, there was a complete absence of records pertaining to production of bagasse, consumption thereof as fuel in the production of sugar, sales effected during the year under consideration and the figure of balance stock available for sale, for the reason, the Ld. AO vide para 13 of assessment order following the industry standards has meticulously estimated the production of bagasse at 1,62,592MT i.e. 32.97% of crushed sugarcane and considering 4/5 thereof as used for consumption as fuel in the process of production of sugar, and has finally arrived at stock of 32,518MT available for sale in the hands of appellant. The Ld. AO further on the basis of bailing expense incurred by the appellant, has valued the aforestated stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s lost due to fire and reconsidered the rate of valuation thereof and sustained the addition to; Bagasse Estimated Stock (MT) Sales / Loss (MT) Balance Stock (MT) Rate (₹) Value (₹) Bailed 16789 2995 13794 200 27,58,800 Loose 15729 3308 12421 60 7,45,260 Total 32518 2995 29523 - 35,04,060 10. In this factual background ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or sale i.e. @ 1/5 of estimated bagasse produced by the appellant. After considering the bailing expenses incurred during the AY under consideration, the Ld. AO classified them into bailed bagasse and loose bagasse and then worked out the value of suppressed sales for the purpose taxing as revenue. 13. From the audited financial statement (page 70 of the paper book), it ostensibly transpires that, the appellant showed no closing stock of bagasse. The Ld. AO, underlining the absence of stock records, after allowing the standard consumption from the estimated production of bagasse, the revenue from the suppressed sales of surplus stock of bagasse has carried out the addition as expounded at para 13.1 to 13.4 of his order. 14. Since the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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