https://www.taxtmi.com/caselaws?id=752105 ITAT Ahmedabad allowed the assessee's appeal against disallowance of raw material consumption. The AO and CIT(A) made ad hoc additions based on estimated percentage increases in raw material consumption without rejecting books of account under section 145. The tribunal held that mere deviation in consumption percentage cannot justify rejecting books of account without inquiring into purchase genuineness. Since books were regularly maintained and audited without adverse comments, revenue failed to demonstrate specific defects. The tribunal deleted the addition, ruling that estimation methods are unjustifiable when books are accepted as correct. en-us Tue, 30 Apr 2024 00:00:00 +0530 Fri, 03 May 2024 07:11:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752105 ITAT Ahmedabad allowed the assessee's appeal against disallowance of raw material consumption. The AO and CIT(A) made ad hoc additions based on estimated percentage increases in raw material consumption without rejecting books of account under section 145. The tribunal held that mere deviation in consumption percentage cannot justify rejecting books of account without inquiring into purchase genuineness. Since books were regularly maintained and audited without adverse comments, revenue failed to demonstrate specific defects. The tribunal deleted the addition, ruling that estimation methods are unjustifiable when books are accepted as correct. Case-Laws Income Tax Tue, 30 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752105