TaxTMI 
TaxTMI 
1984 (2) TMI 221
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....ts. It is the Department's case that the assessee firm has agreed to the addition of this amount of Rs. 7,807 to its income. The ITO further added an amount of Rs. 9,450 to the total income of the assessee firm on account of unexplained cash credit in the name of four minors. 3. The assessee firm being aggrieved by the order of the ITO went in appeal before the AAC because the firm showed its income at Rs. 55,550 for asst. yr. 1980-81 whereas the ITO has computed the total income at Rs. 82,000. The AAC upheld the addition of Rs. 2,000 only from the total addition of Rs. 7,807 on account of suppressed sales of groundnut oil and unrecorded and unexplained purchases of groundnuts. The AAC had deleted the entire addition of Rs. 9,450 made on....
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....tent of Rs. 470 totalling Rs. 7,807. The sales of Rs. 7,337 and the purchases of Rs. 470 were not recorded in the books of accounts by the assessee. This gives an idea that the assessee firm did not record certain sales of groundnut oil and purchases of groundnuts in the books of accounts. 6. The AAC had considered the issue of addition of profit of the sales of Rs. 7,337 and thus sustained addition of Rs. 2,000. He has also considered the expenses pertaining to the said sales and of lean margin of profit higher than the corresponding purchases. He was unable to find out how many purchases were not brought on the account books and considered that on account of this type of suppressed sales and suppressed purchases there should be some ad....
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....th the mother of the minors and the said sums were collected on account of gift on various occasion such as birthdays, diwali and raksha bandhan etc. It was explained before the ITO by the assessee firm's representative, that these amounts because of accumulating by the mother of the minors were creditor in the account books of the firm to earn profit, etc. The ITO did not accept this explanation on the ground that the assessee firm did not produce any evidence to prove that the amounts credited in the names of our minors in the account books of the firm was proved by furnishing details of dates of giving gifts on occasions and the particulars of accumulation of amounts. However, the ITO did not doubt the credibility of minors relatives to ....
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....sad More 1973 CTR (SC) 500 : (1971) 82 ITR 540 (SC). The AAC has reproduced the observations of the Supreme Court in his order in para No. 2 which makes it clear that human mind may differ as to the reliability of piece of evidence but the official fact finding authority is made conclusive by law. The AAC applied this test and deleted the addition made by the ITO on account of unexplained cash credit in the names of four minors. 11. The order of the AAC is completely based on the fact finding and also supported by the decisions of the Tribunal and Supreme Court. That order does not require any interference at our hands. 12. Now the only question has remained whether the AAC has violated the provisions of s. 46A of IT Rule, 1962 becaus....