2013 (11) TMI 59

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.... from melting scrap. It filed its return of income for the assessment year 2003-04 on 24-11-2003 declaring total income at Rs. Nil on account of loss. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 29-03-2006 and the total loss was determined at Rs.70,19,220/-. Aggrieved by the order of the learned AO, the assessee carried the matter before the learned CIT(A). The learned CIT(A) vide order dated 18-09-2006 partly allowed the appeal of the assessee. Aggrieved by this order of the learned CIT(A) the revenue is now in appeal before us and has raised the following effective ground: "(1). The learned CIT (A) erred on facts and in law in directing to adopt the average GP rate of l....

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....and made the addition of Rs.3,05,32,388/- as unaccounted sale. Aggrieved by the order of the learned AO, the assessee carried the matter before the learned CIT(A). The learned CIT(A) considering the submissions of the assessee granted partial relief to the assessee by holding as under:- "5.1 During the course of appellate proceedings, the Authorized Representative filed a written submission in which is explained that the Excise Department has detected shortage of stock valued at Rs.3,05,32,388/- while conducting survey at the premises of the appellant on 17.7.2002. The order passed by the assessing authority of Central Excise Department has been confirmed by the first appellate authority. Therefore, I do not find any merit in the content....