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TMI Blog2008 (1) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... he manner in which the scrap generated was disposed of & accepted the material of accounts when the scrap was finally sold – when AO made assessment u/s 143(3), it was already in knowledge of him that stock register of scrap was not maintained – hence there is no reason warranting the reopening of concluded assessment X X X X Extracts X X X X X X X X Extracts X X X X ..... s set out that it was noticed that the brass scrap and plastic powder scarp generated in the manufacturing process is of significant quantity and value. On the basis of the observations made from the manufacturing process carried out by the Search party and from the statements of directors/partners, who were examined, it was noticed that the brass scrap is about 45% of the total consumption of bra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y ITAT. Reference for that purpose is made to the order dated 29.6.2005 in I.T.A. No.1529/Mum/96 and 83/Mum/97 in the case of Asst. Commissioner of Income Tax Vs. M/s. Nibs India. It is also set out that there were no reasons to believe, as all the material was available with the Assessing Officer when the original assessment was made. In similar circumstances in respect of similar scrap this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already taken a view, that merely because there was scrap, is no reason to reopen the assessment. The notice therefore, served under Section 148 has to be quashed and set aside. 3. On behalf of the respondents, reply has been filed by Mr.Y.S. Sonawane. The only material relied upon is the statement of Mr.B.G. Sanghvi wherein it is purported that he has made attempt to sell the scrap and shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no doubt true that the stock register of the scrap generated was not maintained. But this information was available to the Assessing Officer when the assessment was made under Section 143(3) of the I.T. Act. 5. Even otherwise, this matter is pending in this court since the year 1990 and interim relief was granted which is pending till date. 6. We are therefore, of the opinion that as there we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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