TaxTMI 
TaxTMI 
1994 (4) TMI 110
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....ool 61,050 kgs. (b) Silver 90 kgs (c) Yarn 2,570 kgs (d) Blankets 990 . The explanation offered by the assessee was that 29,223 kgs. of raw wool belonged to him and the remaining belonged to different parties. The list of the parties to whom the aforesaid goods belonged along with the file and bill book was produced in support of his contention. The explanation was not accepted for various reasons, namely: (a) File and bill book, not found during the course of search, subsequently produced, cannot be relied upon; (b) Goods of the other parties, received for spinning are generally returned within fifteen days' time which was not found to be there; (c) Whereas in case of M/s Paras Wool Traders the ....
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....ined by the learned CIT(A). 4. The learned counsel for the assessee, on the other hand, countered that: With the help of the documentary evidence it was shown that the goods belonged to other parties and were not owned by the assessee. It was also shown that there was no sanctity like fifteen days' period for return of goods after their receipt. By way of chart, it was shown that the goods have been returned even beyond a period of fifteen days. The parties certified that the goods belonged to them. In the face of these, addition was rightly deleted by the learned CIT(A). 5. We have carefully considered the rival submissions and have also gone through the material placed on record. Admittedly the Assessing Officer had obtained copies ....
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....,57,701 made in the trading account for alleged low gross profit rate shown for the assessment year under consideration. The provisions of s. 145(1) were invoked on account of- (a) non-maintenance of day-to-day stock-cum-manufacturing account; (b) non-recording of all transactions in the books of account; (c) no co-relation between purchases and sales relating to specified items; and (d) fall in yield of wool from 82% in asst. yr. 1986-87 to 75.8% in the asst. yr. 1987-88. 6.1 The explanation of the assessee that fall was due to increase in expenses in card clothing, machinery maintenance and wages was found to be incorrect on comparing the expenses on these items vis-a-vis the gross receipts of the year. Having regard to oth....
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....omparable with that of the assessee. The shortage of yarn was 24.2% in the year 1987-88 as against 24.8% in the preceding year and 27.2% in the year before that. Having regard to these facts, the addition was rightly deleted by the learned CIT(A). 9. We have considered the rival submissions. Admittedly during the year the assessee has done substantial business on its own account as compared to earlier years. The accounts had also been maintained as per the past practice when no day-to-day stock register was kept. The assessee had rendered plausible explanation in respect of non-accounting of Rs. 3,825 which stands un-rebutted. Expenses on machinery maintenance, card clothing and wages have registered an increase compared to the quantity ....
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....ion was made in the hands of the assessee. The learned CIT(A), however, deleted the addition after finding the explanation of the assessee as convincing in the light of the evidence rendered both before him as well as Assessing Officer. 11. The learned Departmental Representative submitted that: In her statement before the Assessing Officer, Smt. Vimlesh Singla never disclosed the fact that she had received a gift of Rs. 10,000 from her mother which was in fact utilised in purchase of jewellery. The explanation was an after-thought. This was further confirmed by the fact that Smt. Naraino Devi was not produced for her statement in spite of adequate opportunity allowed. Considering that the factum of the jewellery having been purchased, w....