2003 (9) TMI 288

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....hi, polishing at Uttarsanda and exporting to its sister concerns in Middle East. The appellant-company disclosed yield of 91.49 per cent in the year under consideration. They have themselves disclosed yield of 94.25 per cent in asst. yr. 1992-93. The learned Departmental Representative submitted that the assessee did not maintain stock and production registers. The assessee gave different figures of purchases of paddy/rice purchased during the course of assessment proceedings. The AO was therefore fully justified in rejecting the book result and applying yield of 94.25 per cent as shown by the assessee in asst. yr. 1992-93. He also placed reliance on the judgment of the Kerala High Court in the case of CIT vs. Bhadra Enterprises (1998) 148 ....

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....siness. The learned counsel also drew my attention to a certificate issued by All India Rice Exporter's Association, who have confirmed that average of yield comes out to 91 per cent consisting of exportworthy rice to the tune of 60 per cent, brokers to the extent of 31 per cent and bran 9 per cent. The yield declared by the assessee was better as compared to the normal yield certified by All India Rice Exporter's Association. This certificate was brushed aside by the AO by observing that the assessee has not shown any bran stock and sale of bran stock was only of 10.08 MT. The learned counsel also submitted that in the absence of day-to-day stock records the quantitative details of purchases of rice given during the course of assessment pr....

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....A) is also arbitrary and excessive. 4. I have considered the submissions made by the learned representatives of the parties and have gone through the orders of the learned Departmental authorities. The assessee's submission that the appellant-company was entitled to deduction under s. 80HHC in the event of taxable profits as they had made export turnover to the extent of 94.2 per cent of total sales, has not been disputed by the learned Departmental authorities nor by the learned Departmental Representative before us. Likewise, para 7 of the assessment order also shows that the assessee has not claimed depreciation on various depreciable assets owned and used by the assessee. It was a case where the assessee suffered a loss of Rs. 15,19,....