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TMI Blog2023 (2) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... challenged by the assessee on the following grounds; "1) On the facts and circumstances of the case the ld. CIT(A) has erred in holding that the amount of Rs. 35,04,060/- towards bagasse stock not accounted & added to income. While arriving at this decision the ld CIT(A) has erred in - 1) Adding to income Rs. 35,04,060/- towards bagasse stock not accounted & added to income. The addition made by the Assessing Officer be deleted. 2) On the facts and in the circumstance. The ld. CIT(A) has erred not considering the decision in Shankar SSK for A.Y. 1990-91 - 63 TTJ 158 (Pune ITAT) Pad. Dr. V. V. Patil SSK Ltd in ITA No. 255/PN/95 for A.Y. 1991-92. 3) Bagasse stock register is duly maintained & was produced before CIT(A). 4) Such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof and balance stock (if any) as at the closure of financial year relevant to AY, which has been expounded at page 4-5 of the assessment order. 3.3 Aggrieved by aforesaid addition, the assessee filed an appeal before the Ld. CIT(A) and later before this Tribunal in ITA No. 721/PN/2004, whereby the Tribunal had remanded the matter back to the file of Ld. FAA for de-nova consideration of the issue in the light of decision of Hon'ble Supreme Court in "CIT Vs British Paints India Ltd" reported in 188 ITR 44. 3.4 Successively, in the second round of appeal before the Ld. FAA, the assessee fruitfully contended the loss of loose stock of bagasse due to fire by placing evidential documents and justification for rate of valuation to be applied f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of expert certificate obtained subsequently from Vasantdada Sugar Institute. The Ld. DR further placing a strong reliance on the order of tax authorities below [for short "TAB"] contended that, in the absence of stock records after rejecting the book results, the addition carried out by the Ld. AO finds force in the light of Hon'ble Apex Court decision in "CIT Vs British Paints India Ltd" (supra) for the reasons the addition deserves to be sustained. 6. After hearing to rival contentions of both the parties; and subject to the provisions of rule 18 ITAT, Rules, 1963 perused case records, case laws relied upon by the appellant as well the respondent and duly considered the facts of the case in the light of settled legal position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne crushed during the aforestated period. 9. When the Tribunal remanded the matter to the file of Ld. CIT(A) with a clear direction to re-adjudicate the issue a fresh in the light of judgement of Hon'ble Supreme Court in "CIT Vs British Paints India Ltd." (Supra), the Ld. CIT(A) finding force in the submission of the appellant, accepted certain quantity of loose bagasse as lost due to fire and reconsidered the rate of valuation thereof and sustained the addition to; Bagasse Estimated Stock (MT) Sales / Loss (MT) Balance Stock (MT) Rate (Rs.) Value (Rs.) Bailed 16789 2995 13794 200 27,58,800 Loose 15729 3308 12421 60 7,45,260 Total 32518 2995 29523 - 35,04,060 10. In this factual background, coming to adjudication, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d bagasse produced by the appellant. After considering the bailing expenses incurred during the AY under consideration, the Ld. AO classified them into bailed bagasse and loose bagasse and then worked out the value of suppressed sales for the purpose taxing as revenue. 13. From the audited financial statement (page 70 of the paper book), it ostensibly transpires that, the appellant showed no closing stock of bagasse. The Ld. AO, underlining the absence of stock records, after allowing the standard consumption from the estimated production of bagasse, the revenue from the suppressed sales of surplus stock of bagasse has carried out the addition as expounded at para 13.1 to 13.4 of his order. 14. Since the appellant failed to negate the est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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