TaxTMI 
TaxTMI 
2012 (4) TMI 742
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....209/-. 3. Facts of the case in brief are that the assessee is a Private Limited Company engaged in the business of extracting oil from copra. During the course of assessment proceedings, the A.O. noted that the electricity units consumed per tone of Copra crushed is comparatively higher than that of last year. Similarly, yield percentage too has fallen compared to the last year. The A.O noted the comparative figures of copra crushed cum electricity units consumed and yield percentage in respect of the current year and the immediately preceding year, the details of which are as under : " F.Y. 04-05 F.Y. 05-06 Electricity Units Consumed 128482 158664 Copra crushed per Unit of Elec. 9.74 kgs. 8.23 kgs Copra Cru....
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....e above stock was affected by rains which affected the quantum output adversely and resulting in increase in losses. Rejecting the various explanations given by the assessee, the A.O. rejected the book results and estimated the G.P. at the rate of 14.52% and determined the suppressed G.P. at 596409/-. The A.O. similarly determined the unrecorded sales of oil generated on account of suppression of yield % and determined the suppressed sales at Rs. 9,85,800/-. Thus he made total addition of Rs. 15,82,209/- on account of suppression of G.P and unrecorded sale of oil generated out of suppression of yield. 4. Before CIT(A), it was submitted that during the year the assessee had purchased 1415033 kgs of raw material (copra) for Rs. 4,30,73,867....
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....g the dry period/wet period and rate thereof was also filed before the CIT(A) the details of which are as under : Purchases during April to June 05 Price Range Quantity Amount 15-18 0 0 20-27 187150 4739954 28-38 115074 3860600 39 and above 125000 5465100 Total 427224 14065654 Purchases during Jan to March 06 Price Range Quantity Amount 15-18 20000 346800 20-27 38250 935084 28-38 109600 3427485 39 and above 0 0 Total 167850 4709369 4.2 It was submitted that due to the low quality of raw material, it took more time to extract the oil and consumed more time to crush the copra. It was submitted th....
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.....O. decided to adopt the yield percentage of oil @ 60% and crushing of copra per unit of electricity at 9 kgs. Applying his own "thought/mind". As can be seen from the assessment order, the yield of oil during the F.Y. 2004-2005 was 62.81% compared to 58.49% during the period under consideration. Similarly, the total output if @ 92.42% during the F.Y. 2004-2005 compared to 89.71% during the period under consideration. Thus, the A.O. accepted in principle that there cannot be any constant consumption of electricity or uniform yield over the periods. However, the A.O. decided to apply his own formula rejecting the explanation offered by the appellant. The A.O. accordingly reworked the G.P. percentage and unrecorded sales applying mathematical....
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....view of this, the addition of Rs. 5,96,409/- is deleted and the A.O is directed accordingly. As regards unrecorded sales of Rs. 9,85,800/- arrived by the A.O. is also on false presumption since the figure is arrived at by applying the mathematical formula by adopting estimated yield @ 60% as per "thought and mind" of the A.O. Therefore, the addition of unrecorded estimated by the A.O. at Rs. 9,85,800/- sales also does not survive and hence deleted. Aggrieved with such order of the CIT(A), the revenue is in appeal before us. 6. The Ld. D.R. strongly relied on the order of the A.O. The Ld Counsel for the assesse, on the other hand, while supporting the order of the CIT(A) drew the attention of the Bench to the voluminous paper book file....