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Per P.K. Bansal, Vice President This appeal has been filed by the assessee against the order of the CIT(A)-17, Mumbai dated 30.03.2015 for A.Y. 1997-98.

2. First ground of the appeal relates to sustaining of the addition of Rs.5,47,174/- on account of suppression of sales.

3. The facts relating to this ground are that during the course of assessment proceedings the AO asked the assessee to reconcile the sales as per Profit & Loss Account with the assessable value and excise duty as per RT-12 statement. The assessee submitted that the assessable value and excise duty represents the value of goods removed from the factory on payment of duty. The goods can be removed either for direct sale or for transfer to depots for subsequent sales. So the assessable value and excise duty may not tally with the sale as per the Profit & Loss Account. It was further submitted that for tallying the assessable value of excise duty as M/s. Parle Biscuits Pvt. Ltd.

5. We heard the rival submissions and gone through the orders of the tax authorities below. The learned A.R. before us vehemently contended that the main reason for this difference of Rs.5,47,174/- is inter depot transfer as well as destruction of goods due to which the sales will not tally with the assessable value and excise duty. The different, it was M/s. Parle Biscuits Pvt. Ltd.

contended, was only 0.03% of the total sales value, therefore it must be deleted. The learned D.R., on the other hand, relied on the order of the AO. We do agree with the learned A.R. that the difference amounting to Rs.5,47,174/- is hardly 0.03% as compared to the total turnover of the assessee company which is at Rs.167.85 crores. This may be attributable to the inter depot transfer and destruction of goods. Neither the AO nor the CIT(A) has taken into account the fact of inter depot transfer and destruction of goods. The assessee deals in the consumable products, therefore it is quite natural that allowance to be given to the assessee for destruction of goods during the course of transfer. The loss being incurred at 0.03% keeping in view the quantum of turnover of the products, in our view is just reasonable. We, therefore, set aside the order of the CIT(A) on this issue and delete the said addition. Thus the ground raised by the assessee is allowed.

Order pronounced in the open court on 10th July, 2017.

                Sd/-                                     Sd/-
           (Pawan Singh)                             (P.K. Bansal)
          Judicial Member                           Vice President

Mumbai, Dated: 10th July, 2017






                                                   M/s. Parle Biscuits Pvt. Ltd.

Copy to:

   1.   The   Appellant
   2.   The   Respondent
   3.   The   CIT(A) -17, Mumbai
   4.   The   Pr. CIT - 10, Mumbai
   5.   The   DR, "D" Bench, ITAT, Mumbai
                                                   By Order

//True Copy//
                                                Assistant Registrar
                                        ITAT, Mumbai Benches, Mumbai
n.p.