2011 (4) TMI 1561

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....ition of Rs. 5,03,831/- as against the addition made of Rs. 47,93,539/- on account of peak expenditure? (B) Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the addition made on account of law recovery of oil of Rs. 1,68,21,691/-?" 2. With respect to question no. 1, we find that the Tribunal has taken into account all facts, circumstances and evidence on record to come to the conclusion that the Assessing Officer was not justified in making additions. By detailed speaking order, the Tribunal reversed the order of the Assessing Officer as well as the CIT (Appeals). The issue pertains to the purchases made by the assessee and not entirely believed by the revenue authoritie....

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....he parties did not attend or they were found to be non-existent. On the contrary, both parties were produced and their detailed statements have been recorded they have produced accounts and also shown the sources from which they made purchases. Both have clearly confirmed having sold goods to the assessee. The documents issued by them are checked by sales tax authorities at the time of delivery to the assessee and this material aspect is not doubted by Revenue at all. Nothing moriminating has been found even during survey against the purchases." 4. We find that the entire issue is based on facts and upon appreciation of evidence on record. The Tribunal having taken into account different factors emerging from the record, found that there w....

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....9. We have considered the material on record and the rival contentions as regards additions by way of low recovery of oil made by AO. The AO has based the addition on laboratory reports and statements of employees of assessee. According to the AO the report clearly show yield of 48 to 52% and the same has been also stated by employees during survey. Based on the same, we find from the working of the AO on page 39 of assessment order that the AO has applied 48% yield to groundnut seeds only after reducing husk ratio of 20.32% from 100% of groundnut input. Thus, the AO has applied 48% to 79.68% (100% groundnut less 22.32% husk) and the resulting yield arrived at by the AO is 38.24%. As the assessee has shown yield of 35.67%, the AO has consid....

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....nding upon the quality f seeds and the overall recovery of oil from inshell groundnut remains between 34% to 37%. We also find that in earlier years in the case of assessee itself total oil yield is around 35% and the same is accepted for several years by the department in order passed u/s. 143(3) of the Act. The same position emerges from yield rates of many other cases of oil mills whose figures are cited by the assessee. We find that neither the accepted history of yield in own case or in other cases of the technical evidence furnished by the assessee has been controverted by the Revenue. After considering the same as also the process chart, it is also clear that the ITO has adopted a different method of computing the yield which is not ....