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The Tax PublishersITA No. 1561/Del/2019
2021 TaxPub(DT) 0181 (Del-Trib)INCOME TAX ACT, 1961
Section 143(3)
Where assessee claimed burning losses during the process of manufacture of ingots, revenue was not justified in disallowing that same as purchases were recorded in the books of account and details of sponge iron used along with the documentary evidence, which were filed before revenue authorities, were not properly appreciated.
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Assessment - Additions to income - Assessee claimed burning losses during process of manufacture of ingots -
Assessee challenged addition made by AO on account of burning losses during the process of manufacture of ingots. Held: There was considerable cogency in the contention of assessee that there was no standard percentage of burning loss in furnace and it only depended furnace to furnace and only one kind of scrap could not be used, as they used different kind of scrap which had different percentage burning loss. All purchases were recorded in the books of account and details of sponge Iron used along with the documentary evidence, which were filed before revenue authorities, were not properly appreciated. It was also noted that during the year the burning loss in the assessee's plant was to the extent of 5.81% which was accurate and as per consumption and production of the finished goods. The addition in dispute was not tenable.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
INCOME TAX ACT, 1961
Section 143(3)
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