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[i] On perusal of the records it is seen that the consumption of raw material has been increased by Rs.23,12,896/- [49%] i.e. from Rs.46,50,478/- in the previous year to Rs.69,63,374/- during the year under consideration despite the fact that the turnover of the assessee has been decreased by'Rs.27,51,655/- [7.95] i.e. from Rs.3,46,11,057/- in the previous year to Rs.3,18,59,402/- during the year under consideration, [ii] The assessee company is not maintaining any day-to-day stock register which has been confirmed by the assessee vide its letter dated 14.07.2010. The assessee vide its letter dated 14.06.2010 stated that the company is not maintaining subsidiary records. The tax auditor in his audit report in clause 28(b) in Form No.3CD reported that "quantitative details have not been produced before us, hence we are unable to report on the same." In the absence of day-to-day stock register and quantitative details, the consumption of raw materials is not verifiable.

[iii] During the year under consideration the assessee has claimed modeling & shooting expenses of R.3,50,389/- as against Rs.34,450/- claimed in the immediate preceding year. Thus, there is a disproportionate increase in the said expenses during the year as compared to immediate preceding year. This disproportionate increase in the said expenses is despite the fact that the turnover has been decreased from Rs.3,46,11,057/- in the last year to Rs.3,18,59,402/- in the year under consideration. The assessee was asked to furnish complete details of the said expenses with supporting proof and evidences. The assessee has furnished copy of the ledger account of the said expenses. No other supporting proof and evidences has been furnished. Further, on perusal of the ledger account it is seen that most of the payments are made in cash. In the absence of complete supporting evidences, the said expenses are not verifiable.