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TMI Blog2017 (2) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, the Assessing Officer failed to do any exercise to discredit the claim of the assessee. No claim of similar type of industry was compared. The explanation given by the assessee was verified. He further asked the details without verifying the explanation tendered by the assessee. No doubt in the said circumstances the CIT(A) has allowed the claim of the assessee in accordance with law. In view of the said circumstances, we are of the view that the CIT(A) has passed the order judiciously and correctly which is not required to be interfere with at this appellate stage. - Decided against revenue - I.T.A. No.2751/Mum/2015 - - - Dated:- 30-11-2016 - SHRI B.R.BASKARAN, AM AND SHRI AMARJIT SINGH, JM For The Revenue : Shri Nitesh Joshi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54 of the Act before the Hon ble ITAT, Mumbai. The Hon ble ITAT relying upon its own order dated 30.11.2010 in assessee s own case set aside the issue to the file of Assessing Officer with the direction containing para 8 of the order dated 30.11.2010. The para 8 of the said order is hereby reproduced as under:- From the orders of the lower authorities, it is not clear as to how the scrap was generated and therefore, in order to verify whether the scrap had direct nexus with the industrial operation or it was scrap of other nature, we restore this issue to the file of the A.O. for necessary verification. To the extent, the scrap has direct nexus with the industrial operations thereby implying that to the extent scrap is in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities as to how the scrap was generated, it restored the issue to the file of the Assessing Officer in order to verify whether the scrap had direct nexus with the industrial operation or it was the scrap of the other nature. During the course of re-assessment proceedings u/s.143(3) r.w.s. 254 of the Act, the appellant had furnished that detailed manufacturing process vide its letter dated 08.02.2012 which is reproduced in paragraph 6.1 above. The process of manufacturing as explained by the appellant shows that the generation of scrap is ingredient part of the manufacturing as explained by the appellant shows that the generation of scrap is ingredient part of the manufacturing activity. In the assessment order the AO did not contrave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the views of the AO. The direction of the Hon ble ITAT to the AO was to verify whether the scrap was generated out of industrial operation or otherwise. The appellant furnished details of process of manufacturing in which it could be seen that the scrap is generated as by-product. The assertion of the appellant has not been negated by Assessing Officer by bringing on record either contrary evidence or pointing out the inaccuracies in the process explained by the appellant. Nothing precluded the Assessing Officer from bringing on record the information sought by him from the appellant regarding comparable case or data released by the association of industries even after the appellant failed to produce such information. To my mind the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellant has explained his version by letter dated 18.03.2013 which has been mentioned in the order of the CIT(A), however, after furnishing of the details to the Assessing Officer, the Assessing Officer failed to do any exercise to discredit the claim of the assessee. No claim of similar type of industry was compared. The explanation given by the assessee was verified. He further asked the details without verifying the explanation tendered by the assessee. No doubt in the said circumstances the CIT(A) has allowed the claim of the assessee in accordance with law. In view of the said circumstances, we are of the view that the CIT(A) has passed the order judiciously and correctly which is not required to be interfere with at this appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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