9911796707
TMI Blog2010 (10) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, the Hon'ble ITAT is justified in law in deleting the addition of Rs.1,00,93,691 made by the Assessing Officer on account of unexplained investment in the purchase of 227900 kgs. of raw palm oil and unrecorded sales of the same quantity? (ii) Whether in the facts and circumstances of the case, the Hon'ble ITAT is justified in law in deleting the addition of Rs.8,17,948 made by the Assessing Officer on account of difference of 18468 kgs. of the closing stock which was treated as unrecorded sales? (iii) Whether in the facts and circumstances of the case, the Hon'ble ITAT is justified in law in allowing the deduction under section 80-IB amounting to Rs.31,32,567, which was disallowed by the Assessing Officer?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, to remove foul smell from the refined palm oil, deodorization process had to be carried in refining section by transferring 2,27,900 Kgs. of this oil out of total of 2,37,677 Kgs. purchased by it. This contention of the appellant has somehow not been accepted by the Assessing Officer for the reasons discussed in the assessment order and which have also been discussed in the preceding paras. Though apparently, the Assessing Officer has sought to make out the case that this explanation of the appellant is not justified, the inference drawn by the Assessing Officer is somehow not supported by any evidence brought on record. The Assessing Officer has apparently drawn that inference just on the basis of certain entries as per the quantitat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils have been worked out keeping in view the contention of the appellant that 2,27,900 Kgs. of refined palm oil was taken in the WIP for reprocessing on account of deodorization out of finished goods section. Even in the assessment order in Table-III brought out on page 4 of the assessment order where quantitative details of finished products third stage have been given, in the column. For sales, the words "sale/reprocess" have been mentioned by the Assessing Officer himself also. This rather supports the case of the appellant inasmuch as the figure shown against this column is not only in respect of sales, but include the figures in respect of reprocessing also. As per these details given by the appellant and which have been reproduced abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase and subsequent transportation of this oil from Abohar to Ludhiana. As already mentioned the oil so purchased was duly accounted for in the relevant stock record maintained as per the Excise Department requirements. From the stock records, it is duly verifiable that this refined palm oil was taken to be WIP. These records are maintained in form RG-23A Part-1 and RGI Daily stock account register prescribed under the excise laws. The refined palm oil is shown to be first received and entered in the relevant form RG 23A Part 1 for imported refined palm oil. Out of this, this oil is shown to have been taken to stock register of crude palm oil (work-in-progress). The movement of the refined palm oil from RG23A Part-I to stock register i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 Kgs. In the absence of details of alleged sales of 2,27,900 Kgs. outside the books of account which are otherwise, taken into account in the quantitative details given by the same Auditors, in my opinion, no Auditor could complete the audit because this position could not be reconciled in any manner. However, as the Auditors themselves have considered the sales of 7,00,954 Kgs. of refined palm oil only in the books of account of the appellant, the contention of the learned counsels deserves to be accepted from that point of view also. Further, as already mentioned and contended by the learned counsels also, the Assessing Officer could not point out any single instance of any sales or purchase made by the appellant outside the book ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
