TaxTMI 
TaxTMI 
2018 (7) TMI 1405
X X X X Extracts X X X X
X X X X Extracts X X X X
...., dated 23.1.2017 which are arising out of the assessment orders u/s 143(3) of the Income Tax Act (in short referred as 'Act') Act framed by the ACIT, Ratlam. 2. As accepted by both the parties, as the issues raised in both these appeals and cross objections are common, these were heard together and being disposed of by this common order for the sake of convenience and brevity. For the purpose of adjudication, we take the facts from ITA No. 274/Ind/2017 in the case of M/s Anmol Ratan in which the revenue has raised the following grounds :- "Whether on the facts and in the circumstances of the case, Ld. CIT(A) was justified in deleting the addition of Rs. 1,05,85,930/- made on account of unsubstantiated claim of wastage? 3. Br....
X X X X Extracts X X X X
X X X X Extracts X X X X
....donation of Rs. 10,000/-. The income assessed at Rs. 1,53,84,850/-. 4. Against the additions, the assessee preferred appeal before the learned Commissioner of Income Tax (Appeals) and partly succeeded. 5. Now the revenue is in appeal before the Tribunal aggrieved with the deletion of addition of Rs. 1,05,85,930/- made on account of unsubstantiated claim of wastage. 6. Before us, the learned DR supported the order of the Assessing Officer whereas the learned counsel for the assessee relying on the findings of the learned Commissioner of Income Tax (Appeals) submitted that the Assessing Officer failed to find any error in the quantitative records regularly maintained by the assessee and also ignored the consistency in the wastage dec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d and silver ornaments. The appellant is maintaining cash books, ledger, purchases and sale vouchers. The purchases and sales are fully vouched. The gold ornaments were manufactured by Sunar on labour basis. The appellant firm is maintaining Sunar bahi in which all the record of raw gold were entered. In Sunar bahi the firm has maintained details of gold which were given to various Sunars and gold ornaments received from them. The purity of gold ornaments received is approximately 92 only. The Sunar mixes alloy (Khar) with pure gold for manufacturing of gold ornaments. The yield varies from 104 to 108. The AO in the para 9 of the assessment order mentioned that the purity of the jewellery varies from 75 to 91.67. The AO also mentio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the books of account of the appellant. Therefore, the AO's conclusion that books of account are defective is not correct. The AO has not brought out any material on record which suggests that the appellant's yield is 08. In the case of International Forest Co. vs. CIT (1975) 10 lTR 721 (J&K) it is held that AO cannot proceed to make an arbitrary addition and base his conclusion purely on guess work. He ought to have related his estimate to some evidence or material on the record as it is not well settled that if the profits shown by the appellant in his return are not accepted it is for the taxing authorities to prove that the appellant has made more profits than returned. Here the AO failed to bring on record anything which shows t....