2012 (11) TMI 1354

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....#39;). 2. The Revenue has raised the following common grounds of appeal in both the appeals: "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing appeal of the assessee without appreciating the facts of the case. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs.13,78,706/- (Rs. 20,76,421/- in ITA No. 913/Chd/2012) out of total addition of Rs. 20,25,009/- (Rs. 21,02,143/- in ITA No. 913/Chd/2012) made on account of excess evaporation/handling loss claimed on petrol and diesel. 3. It is prayed that the order of the Ld. CIT (A) be set aside and that of the Assessing Officer may be restored. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....explanation of the assessee was that the said evaporation loss is as per the audited books of account and duly maintained stock register and also as per the norms prescribed by the Oil Companies and general norms of handling at petrol pump site. The assessee also produced copies of Excise/PG register before the Assessing Officer. The copy of inspection report and the figures of evaporation/handling losses calculated by the Area Sales Officer at the time of inspection for respective periods were also produced before the Assessing Officer. The total evaporation/handling losses calculated by the Area Sales Officer for the respective periods is summarized and reproduced at page 4 of the assessment order. The Assessing Officer noted from the abo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the addition by limiting shortage to 1% in both the accounts i.e. petrol and diesel. 8. The Revenue is in appeal against the above said findings of CIT (Appeals). No appeal filed by the assessee has been brought to our notice. We find that the present issue of evaporation loss has been considered by the Chandigarh Bench of the Tribunal in Arjun Singh (supra) wherein it has been held as under: "2. We have considered the rival submissions and perused the material available on the file. Brief facts are that the assessee declared loss of Rs. 2,12,730/- in its return filed on 30.10.2006, which was processed under section 143(1) of the Act. It was noticed by the Assessing Officer that in the accounts out of total petrol of 703953 lite....