2004 (8) TMI 79

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....ses of the assessee. Stock was found short to the tune of Rs. 30,50,700. In view of discrepancies in the stock, a surrender of Rs. 3 lakhs was made on account of profit earned on the unaccounted sales. In view of the admission of the assessee that sales outside the books of account had been made, books of account were rejected. Yield of rice bran oil was taken at the rate of 12.25 per cent., as per the previous year as against the assessee's claim being 11.59 per cent. The Assessing Officer also made addition of Rs. 1,21,699 in respect of purchases made by the assessee. On appeal, the Commissioner of Income-tax (Appeals) held that it will be fair to restrict the yield rate to 11.75 per cent. as against 12.25 per cent. Reference was made ....

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....ppeals) has placed sole reliance upon the lab examination record found and seized during search. It is not in dispute that the total rice bran processed by the assessee or extracting the rice bran oil was 8935 MT out of which the assessee has shown 1036 MT of rice bran oil being extracted by the assessee. It is also not in dispute that this lab examination report giving the average yield of 11.90 per cent. by the assessee has been obtained while conducting the lab examination on rice bran of 511.88 MT, which means that this lab examination report is nothing but a sample study conducted by the assessee and not the actual average yield taken on the entire rice bran of 8935 MT processed during the year under consideration, by the assessee, whi....

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....lab examination report as a sole parameter for determining the average yield of rice bran oil actually manufactured by the assessee. Hence, we are of the opinion that the Assessing Officer was perfectly justified in adopting the average yield of rice bran oil extracted by the assessee in the year under consideration, on the basis of yield rate shown by the assessee in the preceding assessment year. It is not disputed that in the preceding assessment year, the assessee has shown the yield rate of 12.17 per cent. and so we are of the opinion that the Assessing Officer was not justified in adopting the yield rate of 12.25 per cent. against 12.17 per cent. shown by the assessee in the preceding year because the Assessing Officer has not given a....