2013 (5) TMI 798

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....nd disposed of by this combined order for the sake of convenience. 2. The only effective ground in appeal No. 280/Hyd/13 pertaining to the assessment year 2004-05 which is also one of the effective grounds raised in appeal No. 284/Hyd/13 relating to the assessment year 2009-10 is with regard to disallowance made by the Assessing Officer on the claim of wastage. 3. Briefly the facts are the assessee a private limited company is engaged in the business of manufacture and sale of studded gold and silver jewellery and trading in bullion. In the course of assessment proceedings, the Assessing Officer while examining the audited accounts of the assessee noticed that the assessee has claimed loss of gold and silver in the form of wastage in the ....

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....the parties and perused the material on record. The Assessing Officer had disallowed the assessee's claim of loss of gold and silver due to wastage of an amount of Rs. 36,22,990 and Rs. 3,75,96,000 for the assessment years 2004-05 and 2009-10 respectively. As it appears from records, similar disallowance was also made by the Assessing Officer in the assessment completed for the assessment year 2008-09 in case of the assessee. The assessee challenged the same before the Commissioner of Income-tax (Appeals) and being unsuccessful before the first appellate authority, carried the matter in appeal before the Income-tax Appellate Tribunal, Hyderabad Bench in I. T. A. No. 1326/Hyd/ 2011. A co-ordinate bench of this Tribunal disposed of the ap....

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....6 7,26,790.82 10,90,582.13 6,61,054.93 6,04,977.27   4,38,778.68 6,87,138.28 7,79,499.89 11,56,515.73 7,63,855.81 6,84,396.63 Less : Closing stock 45,128.45 52,709.08 65,933.60 1,02,800.88 79,419.35 64,446.56 Production during the year (including production loss) 3,93,250.23 6,34,429.21 7,13,566.30 10,53,714.85 6,84,436.46 6,19,950.07 Production loss (wastage) 13,519.76 30,400.00 46,415.72 56,940.06 29,851.36 23,240.62 Percentage (%) 3.44 4.79 6.50 5.40 4.36 3.75   The average wastage works out at 4.71 per cent. Considering the rate of net profit at 1.92 per cent. for the present assessment year which is higher than all earlier years giving weightage towards this, we make wastage at a round....

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....ssessing Officer noticed that the assessee had claimed depreciation at the rate of 50 per cent. on vehicles amounting to Rs. 3,32,125. The Assessing Officer being of the opinion that the assessee is entitled to depreciation on vehicles at the rate of 15 percent disallowed an amount of Rs. 2,32,488. The assessee being aggrieved of the disallowance made by the Assessing Officer preferred an appeal before the Commissioner of Income-tax (Appeals). 8. On appeal, the Commissioner of Income-tax (Appeals) accepted the claim of the assessee by allowing deprecation at the rate of 50 per cent. 9. We have considered the submissions of the parties and perused the material on record. It is the contention of the learned authorised representative that th....