Rice milling yield addition deleted after assessee showed higher moisture in paddy and supported the disclosed yield.

In a rice milling matter, the disclosed yield was accepted as fair because the assessee showed that paddy purchased in November and December had higher moisture content, which reduced yield. The year under appeal was also compared with the immediately preceding year, when purchases were spread over a longer period and a higher yield had been accepted. On those facts, the addition for alleged low yield was deleted in favour of the assessee.

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Issues: Whether the addition made on account of alleged low yield in rice milling was justified.

Analysis: The assessee explained that the rice paddy purchased during November and December contained higher moisture, which lowered the yield. The year under appeal was compared with the immediately preceding year, when purchases were spread over a longer period and a higher yield had been accepted. On the facts, the disclosed yield was found to be fair.

Conclusion: The addition on account of low yield was deleted in favour of the assessee.

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