Assessee showed higher wastage of 13.04% on consumption of worsted yarn compared to 8.66% in previous...

Assessee showed higher wastage of 13.04% on consumption of worsted yarn compared to 8.66% in previous year. AO made addition for excessive shortage and scrap value of discarded cables. Held: Trading account and stock found satisfactory by tax authorities. Wastage percentage varied from 13.64% to 16.43% in earlier years, decreased to 8.66% for 3 months in 1982-83, but remained consistent at 13.04% in 1983-84. No objection raised by Excise Authorities on stock maintained. AO accepted trading account, no dispute on quantity of cotton consumed. AO cannot make addition without reasoning and fresh computation when accounts accepted u/s 145(1). Addition on account of excessive shortage not sustainable. Addition of profit u/s 41(2) on sale of coppe..... .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X