TaxTMI 
TaxTMI 
1983 (6) TMI 73
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....car by the partners. Before the CIT(A) the disallowance was contested as excessive. The CIT(A) rejected the claim as the assessee had not furnished any details to prove that the disallowance was excessive. She, therefore, confirmed the disallowance, no material has been brought before us either to justify interference with the order of the CIT(A). The disallowance is, therefore, upheld. 3. In the remaining grounds of appeal from S. No. 1 to 11, addition of Rs. 86,720 out of the total claim of Rs. 1,15,625 has been contested. The assessee main derives income from manufacture of empty tins from tin plates, etc. During the accounting period relevant to the assessment year under appeal, the assessee showed gross profit rate of 3.86% on total....
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....ee had inter alia debited an amount of Rs. 1,15,625 on account of Jhalai expenses. The ITO then observed that a survey of the business premises of the assessee was under taken by the department, in the year 1980-81, when it transpired that the assessee was inflating the expenses on Jhalai to reduce the incidence of taxation. According to the ITO complete addresses of the workers were not available. The Inspector of Income-tax recorded the statements of some of the workers which were available on the spot. He has named 5 such workers whose statements were recorded. According to the ITO, the workers who were examined on the spot had stated that they were being paid charges @ 5 paise per tin towards Jhalai whereas their thumb impressions were ....
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.... 4. The assessee is aggrieved against the above addition sustained by the AAC. It has been contended before us that the authorities below have not properly considered the statement of the workers. Shri Ranka, the ld. counsel for the assessee brought to our notice the statements of workers which were recorded by the Inspector of Income-tax during the course of assessment proceedings. He referred to the statement of one Shri Hukmichand which is available at page 37 of the Paper Book. His statement was recorded by the Inspector of Income-tax at the time of survey as well as during the course of assessment proceedings. The statement at page 37 referred to by Shri Ranka is one which was recorded during the course of assessment proceedings. Sh....
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....nd resort to pick and choose by relying upon the evidence which suited it. 5. The ld. departmental representative, on the other hand, has supported the orders of the authorities below. The copies of the statement recorded during the course of survey have, however, not been filed on behalf of the revenue. Shri Choudhary contended that in view of the statements of the workers made at the time of the survey, the orders of the authorities below deserved to be sustained. 6. We have carefully considered the rival submissions at the outset, we would like to say that there is contradiction in the findings of the ITO. On the one hand, he has held that the gross profit rate in view of the explanation furnished by the assessee was reasonable whi....