https://www.taxtmi.com/caselaws?id=444967 ITAT Delhi dismissed revenue's appeal challenging CIT(A)'s deletion of additions made by AO. First addition concerned alleged inflated purchases through scrap machinery sales without corresponding inventory. CIT(A) found scrap machinery was properly transferred between units, sold to third party with supporting invoices, and proceeds deposited in fixed deposits. Date misinterpretation by AO was corrected. Second addition alleged suppression of sales based on electricity consumption variance. CIT(A) established production was job work with customer-supplied materials, electricity variance explained by manufacturing larger cabinets requiring bigger machines, and excise audit showed no discrepancies. ITAT upheld CIT(A)'s findings, noting additions cannot be made solely on electricity consumption variance without concrete evidence of unrecorded sales. en-us Mon, 16 Oct 2023 00:00:00 +0530 Fri, 27 Oct 2023 18:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444967 ITAT Delhi dismissed revenue's appeal challenging CIT(A)'s deletion of additions made by AO. First addition concerned alleged inflated purchases through scrap machinery sales without corresponding inventory. CIT(A) found scrap machinery was properly transferred between units, sold to third party with supporting invoices, and proceeds deposited in fixed deposits. Date misinterpretation by AO was corrected. Second addition alleged suppression of sales based on electricity consumption variance. CIT(A) established production was job work with customer-supplied materials, electricity variance explained by manufacturing larger cabinets requiring bigger machines, and excise audit showed no discrepancies. ITAT upheld CIT(A)'s findings, noting additions cannot be made solely on electricity consumption variance without concrete evidence of unrecorded sales. Case-Laws Income Tax Mon, 16 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444967