2015 (10) TMI 1612

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..... 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the additions made by AO on account of shortage of 830 quintal of maize and 507 quintal of wheat amounting to Rs. 6,68,150/- and Rs. 6,37,701/- respectively. For this, revenue has raised following two grounds: "1. On the facts and in the circumstances of the case, Ld. CIT(A) is not justified in allowing claim of shortage of 830 quintals of maize, in respect of which addition of Rs. 6,68,150/- was made on account of sale as inferred in the assessment, to its entirety without proper evaluation of the fact that the transactions were directly from parties to parties without necessity of storage, that the addresses of purchasing and selling companie....

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....ned the shortage that there is transit loss which varies from 0.5% to 2% and shortage of loss which varies from 2% to 3% because of moisture loss. But the AO was not convinced with the explanation of the assessee and accordingly, he made addition of the shortage of wheat and maize by observing as under: "It is found from the above mentioned table that your company had purchase of Maize on various day and the same quantity was sold in same day or day after tomorrow. Mainly from Bengali Food Product Pvt. Ltd. in case of purchase and M/s. Bengani Export (India) Pvt. Ltd. in case sales and the address of the companies are same. But in the case of maize purchase 111870.400 quintal on 01.02.2008 which was sold 198334.400 quintal of maize....

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....ales consideration of balance 507.32 quintal of wheat and 830 quintal of maize comes to Rs. 13,05,851/- is being added back with the total income of the assessee as undisclosed sales consideration." There is no dispute that the shortage worked out is only 0.7 and in view of this, the CIT(A) deleted the addition made on account of shortage of wheat and maize in the books of account of the assessee. For this, he noted that the assessee has produced complete books of account and complete supporting documents i.e. stock register, cash memos, vouchers etc. before the AO during the course of scrutiny assessment. No defect whatsoever was pointed out by the AO and there is claim of shortage on account of loss of wheat at 507 quintals and maize a....