9911796707
TMI Blog2023 (10) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... and this was set aside by the CIT (Appeals). For the assessment years 2010-2011, 2011-2012, 2012-2013, 2013-2014 and 2014-2015, no addition was made qua the semi finished goods manufactured and sold outside the books of accounts. As per the stated chart, in all the subsequent years, assessment orders have been passed u/s 143 (3) - A perusal of the assessment orders shows that consistently the sales of semi finished goods made by the appellant to M/s Jai Suspension Systems as a sister concern have been accepted and account books to this extent have also been accepted by the Assessing Officer. Revenue has not been able to dispute the correctness of the aforesaid orders passed u/s 143 (3). After 2009- 2010, no addition has been made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculating the percentage (%) of scrap generated during the year, the assessment worked out to 7.2% and not 6.8% as had been worked out by the assessee. The average scrap generated during the earlier three years worked out to 6.8%. The assessee had produced 0.4% more scrap during the year under assessment. The excess scrap was utilized for production of 4000.806 MTs of finished goods. The average sale prices is taken as Rs.64.008.26 per M.T. the working of the sale price of Rs. 25,60,84,653/- is detailed as under:- Total sale consideration declared in the printed booklet exclusive of excise duty 45245.30000 less sales to the subsidiary company SFG 171224220 Sale of finished goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer has neither rejected books of account nor brought out any evidences to support the suspicion that there was unaccounted manufacturing and sale of finished goods nor has AO made out any case that there were unaccounted sales. The additions were made merely on suspicion. Finally, the order passed by the CIT (Appeals) was upheld and the appeal filed by the revenue was dismissed. 6. Vide order dated 03.05.2023, learned counsel for the parties were directed to place on record assessment order passed after 2010 with respect to the semi finished goods. Pursuant to the said order, learned counsel for the respondent-assessee, has placed on record documents (Annexure R-1 to R-11). Annexure R-1 is the comparative chart of the additions ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 12.10.2017 NA NA 7. A perusal of the above chart shows that the assessee has been selling semi-finished goods to its subsidiary entity namely M/s Jai Suspension System since the assessment year 2009-2010 till 2014-2015. The addition of Rs. 25,20,84,653/- was made by the Assessing Officer for the assessment year 2009-2010 and this was set aside by the CIT (Appeals). However, for the assessment years 2010-2011, 2011-2012, 2012-2013, 2013-2014 and 2014-2015, no addition was made qua the semi finished goods manufactured and sold outside the books of accounts. As per the above stated chart, in all the subsequent years, assessment orders have been passed under Section 143 (3) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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