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2012 (9) TMI 233 - ITAT, DELHIAddition on account of scrap sales - assessee engaged in the business of manufacture and export of ready made garments - addition made on ground that assessee has disclosed lower scrap sale in comparison to other exporters in similar trade - Held that:- It is observed that AO has not found any defect in the books of accounts of the assessee. There is no finding about assessee’s supressed production. Manufacturing production and trading accounts have been duly accepted during preceding three years though assessments were completed u/s 143(3) and no addition on this account was ever made. Current year’s figures of production and trading has also not been doubted. AO made the addition purely on the basis of estimate. More importantly, the ITAT in assessee’s sister concern had deleted the addition made on this account. CIT(A) in his order tried to distinguish assessee’s case with the case of assessee’s sister concern on the basis of raw material used by both parties which according to him was different but did not bring on record any thing to support his findings that material used by assessee generated more scrap as compared to assessee’s sister concern. Therefore, on facts, addition is directed to be deleted - Decided in favor of assessee.
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