process loss during copper wire drawing

[ashok agarwal]

AO has not allowed the burning/process loss in job work of copper wire drawing

[Rama Krishana]

In the query, you did not specify the ground on which loss was disallowed by the AO. In general loss should have been allowed. Make your query elaborate.

[ashok agarwal]

our client doing job work of copper wire drawing, and claim losses both visible ( scrap ) and invisible losses, the AO has not allowed the invisible losses and said that there are not process loss in wire drawing. pl advice and give the relevent cases, if any.

AI Summary

Process loss in manufacturing: invisible losses in copper wire drawing may be allowable if demonstrated with supporting evidence. Taxpayer in copper wire drawing job work claimed visible (scrap) and invisible process losses; AO disallowed invisible losses asserting no process loss in wire drawing. Advisor advised that the query lacked specifics of AO's grounds and that intrinsic process losses incidental to conversion activities are generally allowable, but the taxpayer must present detailed facts and supporting evidence showing the losses are inherent to the process and not avoidable wastage.