9911796707
TMI Blog2010 (6) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... ale to the trading results amounting to ₹ 31,61,782/- which is made on arbitrary basis, unjustified and against law. 3. The assessee in this case derived income from the business of manufacturing and export of ready-made garments. Assessing Officer in this case noted that assessee had made total sales of ₹ 2,69,89,19,937/-. The total raw material consumed during the year was ₹ 1,19,59,29,863/- however only ₹ 15,36,057/- was shown as wastage/scrap sales. Assessing Officer enquired about the reason for low sale of scrap reflected by the assessee. Assessee submitted as under:- While manufacturing the garments some small scarp and cuttings are generated by way of wastage in the manufacturing process and the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport contain the summary quantitative details of raw material and finished goods. The stock register maintained by the appellant is not in such a way, which may help in working the out the quantum of wastage on lot to lot/day to day. The Hon ble ITAT in various cases has dealt with the issue elaborately. For example, the Hon ble ITAT Delhi, has, in its order dated 28.3.2008 in the case of M/s Krishna Kumar Aggarwal vs. ACIT in ITA No. 1187 and 2992/2006; has affirmed its decision in that particular case for the immediate preceding year wherein it was held that estimation of scrap in this kind of trade can reasonably be made at 0.2% of the turnover. The ARs admitted that the appellant has not maintained any record which may conclusively pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee submitted that in assessee s own case for A.Y. 2004-05 to 2006-07, this Tribunal had considered the identical issue and decided the issue in favour of assessee. 6.1 Ld. Departmental Representative on the other hand supported the orders of the authorities below. 7. We have carefully considered the rival submissions. We find that Assessing Officer in this case has not found any defect whatsoever in the books of accounts maintained by the assessee. There is also no mention that profit ratio as disclosed is in any way not comparable with earlier years. Under the circumstances, rejection of assesse s claim and substituting the same on estimate basis is not justified. As regards the decision of the ITAT in the case of Krishna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and erroneously sustained in assessment year 2006-07. It is directed to be deleted in all the three years before us. 7.1 The facts in the present case are quite identical. There is no finding that assessee has suppressed production by showing excessive wastage or excessive generation of scrap. Manufacturing, production trading accounts have been duly accepted. Moreover, the above decision in assessee s own case was rendered after duly considering that decision in the case of Krishna Kumar Aggarwal referred by the revenue authorities. Under the circumstances, adhering to the doctrine of staire decises, we set aside the orders of the authorities below and delete the addition made in this regard. 8. In the result, the appeal filed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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