TaxTMI 
TaxTMI 
TaxTMI 
1990 (12) TMI 138
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....given an opportunity to explain. The assessee furnished an explanation, which was rejected by the Assessing Officer. The Assessing Officer rejected the book results of assessee and invoked proviso to s. 145(2) of the IT Act, 1961. He worked out the suppressed yield of lime at 511 metric tons and 859 tons of Samuda which, according to the Assessing Officer, the assessee failed to disclose. Assessing Officer adopted the average sale rate of hydrabed lime at Rs. 734.50 per MT and calculated the addition of Rs. 10,06,605. 2. Before the CIT(A) assessee explained the defects in the calculation made by the Assessing Officer in working out the yield. The CIT(A) on the basis of the certificate of the expert worked out the expected yield as under: ....
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....cted output of the finished product. The learned counsel pointed out that the expert has taken into account absorption of water at 32 per cent in working out the final production. It was pleaded that complete books of accounts having been maintained and the yield being in conformity with the expert's opinion, there was no justification for the Assessing Officer to make an addition. 5. We have given our careful consideration to the rival contentions. The yield disclosed by the assessee conforms to the expected yield as indicated by an expert whose statement has been recorded by the Assessing Officer. Moreover, it is well settled principle of law that yield of product may vary from concern to concern and year to year depending on various fac....
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....ts were worked out and a difference of Rs. 21,260 was determined out. When asked to explain, assessee pleaded that the stocks belonging to one Shri Akhil Kumar, who is one of the partners of the firm had also been included with his consent in the hypothecated stocks to the bank. The Assessing Officer recorded statement of the bank manager. Statement of Shri Akhil Kumar was also recorded. Assessee also filed an affidavit of Shri Akhil Kumar before the Assessing Officer as well as a certificate issued by him. The Assessing Officer not being satisfied with the evidence produced by the assessee, made an addition of Rs. 21,260 on account of suppressed stocks. 8. The learned counsel for the assessee contended that assessee produced evidence in s....
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....ul consideration to the rival contentions. Shri Akhil Kumar is admittedly the son of one of the partners. That does not, however, disqualify him from giving evidence before the Assessing Officer. Shri Akhil Kumar is assessed to tax and as per the assessment order filed before us the same Assessing Officer, namely, Shri Roshan Lal has made the assessment in his case as well as in the case of appellant firm. The certificate, affidavit and statement of Shri Akhil Kumar is available with the Assessing Officer. The assessment in both the cases has been made on the same date. We see no justification accordingly for ignoring the evidence filed by the assessee in relation to the pledged stocks with the bank. The mere fact that witness produced by t....
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....counsel for the assessee explained that the amount of bad debt is in respect of two parties fromAmritsaras under: M/s. Amritsar Dry Fruit Co. Rs. 8,010 Satwant Singh Mavi Rs. 2,943 According to the learned counsel assessee carries on the business in Dehradun. A sum of Rs. 8010 was outstanding in the case of M/s. Amritsar Dry Fruit Co., in respect of transactions made in the years 1978-79 and 1979-80. Complete correspondence between the parties had been produced before the Assessing Officer and the position was also explained before the Assessing Officer vide para 9 of the written arguments. A similarly in the case of Satwant Singh Mavi transaction had taken place in the year 1981-82 and despite efforts made by the assessee amount of Rs....