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Issues:
1. Assessment of refraction percentage in milling of paddy. 2. Justification of refraction percentage claimed by the assessee. 3. Comparison with previous Tribunal decisions. 4. Appeal against the addition to income by the Income-tax Officer. 5. Decision on the appeals by the assessee. Analysis: The judgment by the Appellate Tribunal ITAT Patna involved two appeals by the assessee regarding the milling of paddy and the assessment of refraction percentages. The assessee, a registered firm, milled significant quantities of paddy during the years under appeal. The Income-tax Officer found the refraction claimed by the assessee to be excessive and allowed lower refraction percentages, resulting in shortages and additions to the income of the assessee. The Appellate Assistant Commissioner upheld the decision for one assessment year but reduced the addition for another, considering the moisture content during the harvesting period and previous Tribunal decisions on refraction percentages. The counsel of the assessee presented detailed milling accounts, monthwise purchase records of paddy, and referred to previous Tribunal decisions to support the claim of fair refraction percentages. The assessee argued that the majority of paddy was purchased during the harvesting season with higher moisture content, justifying the claimed refraction percentages. The departmental representative, however, supported the lower refraction percentages allowed by the Appellate Assistant Commissioner, asserting that the addition to income was warranted based on those percentages. The Tribunal analyzed the monthwise purchases of paddy by the assessee and considered the moisture content during the harvesting season. Referring to previous Tribunal decisions, the Tribunal concluded that the claimed refraction percentages of 5% and 4% by the assessee were reasonable and allowed. Accepting these percentages, the Tribunal found the yield of rice shown by the assessee to be fair for the respective assessment years, directing the Income-tax Officer to modify the assessment accordingly. Ultimately, the appeals by the assessee were allowed, overturning the additions to income made by the Income-tax Officer. In conclusion, the judgment addressed the assessment of refraction percentages in the milling of paddy, the justification provided by the assessee, comparison with previous Tribunal decisions, the appeal against the additions to income, and the final decision to allow the appeals by the assessee based on the reasonableness of the claimed refraction percentages and the fair yield of rice shown by the assessee.
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