1981 (7) TMI 148

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.... registered firm and derives income from rice, dal milling and Atta Chakki etc. The assessee during the years under appeal milled 5423 quintals and 6278 quintals of paddy. The output of rice was for 3311 and 3884 quintals. The assessee deducted refraction at 5 per cent and 4 per cent during these years. After deduction, the paddy sent for milling remained at 5152 quintals and 6027 quintals. The ou....

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....chased during the harvesting period in which time the moisture contains used to be maximum. The assessee further relied in the order of the Tribunal in ITA No. 1491 (Pat) of 1975-76 where the refraction was allowed at 5%. Accordingly, the assessee urged that the addition should be deleted. The Appellate Assistant Commissioner after considering the order of the Tribunal in ITA No. 133 (Pat) 1976-77....

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....1975-76. The counsel of the assessee urged that most of the paddy was purchased during the harvesting season which contained high moisture. Under the above circumstances, the claim of moisture of 5% and 4% was fair. The assessee supported its case by the decision of the Tribunal in ITA No. 1491 (Pat) of 1975-76. The assessee stated that if the moisture is deducted at 5% and 4%, the yield is higher....

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....on when the paddy contains more moisture. The assessee has cited the decision of the Tribunal in the case of M/s Hanumanbux Rambilas in ITA No. 1491 (Pat) of 1975-76 where the Tribunal allowed the moisture at 5%. The assessee itself is conservative in claiming moisture at 4% during the assessment year 1977-78 when the purchase of paddy in harvesting season was less. Under the above circumstances, ....