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TMI Blog2011 (7) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer, restricted the process loss at 0.66% on the basis of findings given in the earlier assessment years. 2. Being dissatisfied, the assessee respondent approached CIT(Appeals). CIT(Appeals) considered the fact that the said issue was already addressed by the Income Tax Appellate Tribunal in case of this very assessee for the assessment years 19871988, 19891990 to 1993-1994, allowing the process loss as claimed by the assessee except sunflower oil which was not for consideration. Thus for three different types of oils, CIT(Appeals) directed the Assessing Officer to allow the process loss whereas for sunflower oil, CIT(Appeals) directed the Assessing Officer to follow the decision taken for the assessment year 19941995 with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very assessee respondent for the same issue, for the assessment year 19901991, the Revenue chose to approach this Court by preferring Tax Appeal No.10/2001 where identical question of law, as raised in present tax appeal, was admitted and has been decided by this Court in favour of the assessee and against the Revenue in the following manner : 9. Quite apart from the above observations, we find that the tribunal had examined the materials on record which included the data of the turnover, Gross Profit rate and process loss for several years. It was found that year after year, the Gross Profit rate of the assessee company was increasing. Process loss was fluctuating between a minimum of 1.9% to maximum of 3.05%. The tribunal also observ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the tribunal based its findings on several factors and came to the conclusion that without any evidence or base the Assessing Officer could not have held that the process loss claimed by the assessee(in the present case at the rate of 3.05%) was inflated or excessive. 10. We are of the opinion that tribunal has considered the facts on record. Several relevant factors have been examined. These facts included uncertainty of the nature of business and fluctuating nature of process loss. By the very nature of things, the business of assessee depended on quality of cotton seed oil procured from the market. Such cotton seed oil depending on quality of cotton produced being an agricultural commodity, naturally quality would depend on the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absence of any evidence that the goods were sold out of books as nothing contrary is pointed out by the Assessing Officer reflecting defect regarding books of accounts and records maintained by the assessee. CIT(Appeals) essentially on the basis of material available with it as presented by both the sides and relying on the genuineness of books of accounts of the assessee negated the version of the Assessing Officer of making addition of ₹ 12.56 lakhs. Tribunal went to the extent of holding that transit loss estimated at ₹ 12.56 lakhs was highly negligible with respect to gross turnover of the assessee which was ₹ 110 crores during the year. With no challenge to the books of account and other documents necessary to be kept ..... X X X X Extracts X X X X X X X X Extracts X X X X
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