TaxTMI 
TaxTMI 
2008 (12) TMI 288
X X X X Extracts X X X X
X X X X Extracts X X X X
....ition of Rs. 11,17,221 made by the Assessing Officer on account of undisclosed sales of potato left by the stores by adopting the rate of potato at the rate Rs. 45.65 per quintal though other assessees of the same trade like M/s. Shri Mahavir Cold Storages, M/s. Shyam Cold Storage have shown the sale of potatoes in the same period at the rate Rs. 140 to 160 per quintal. (3) The order of the Ld. Commissioner of Income-tax (A) being erroneous in law and on facts, be set aside that of the Assessing Officer be restored." 3. The following grounds have been raised by the assessee:- "(1) The learned Commissioner (Appeals) has erred in confirming the addition to the extent of Rs. 2,86,283 after taking this amount as difference of surrendered income of Rs. 15,00,000 and Rs. 12,13,717 (Rs. 9, 13,317 short, realisation in cold storage rent after the Survey + Rs. 3,00,000 surrendered by the appellant as income over and above the income as per profit and loss account Rs. 2,24,921). (2) The learned Commissioner (Appeals) has erred in rejecting the appellant's contention that returned income of Rs. 5,24,921 takes care of the aforesaid shortage of Rs. 2,86,283. (3) The learned Commi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the storers/farmers.-During the course of assessment proceedings it was observed that assessee has not shown income from sale of potatoes left by the storers though the partner of the firm admitted in his statement recorded on oath on 7-12-2000 at page 11 that potatoes left by the storers were purchased by the firm. The statement of one storer Shri Ram Singh who was present in the business premises of the firm at the time of survey was also recorded and was seen and signed by the partner Shri Pradeep Kumar. Shri Ram Singh stated in his statement that he has sold his potatoes stored in the cold storage to the assessee's firm at the rate of Rs. 30 and Rs. 20 per packet. He has also stated that other storers also have sold their potatoes to the firm. Undisclosed sale of the potatoes has also been admitted by the assessee in his statement as in furtherance of that he has made disclosure of income in his statement. The assessee was asked to explain vide order sheet entries dated 17-2-2004 about the purchase and sale of potatoes left over by the storers. The assessee filed his reply dated 3-3-2004 stated that he has shown the purchase and sale of the potatoes and expenses incurred the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng charges at the rate of Rs. 2 per bag at the time of Nikasi is paid to Palledars of cold storages as declared at page 3 of the statements." This also finds confirmation from the order sheet noting dated 32004 wherein the assessee expressed his inability to either identify or produced the buyers to whom the last left over potatoes were sold at thrown-away price. Total bags of potatoes shown sold 20138 Weight in Kg. @ 65 Kg. per bag 20138 X 65 Kg. = 13,08,070 Weight in quintals 13090 Quintals Total receipts from the sale 13090 X 138.5 = 18,12,965 @ Rs. 138.5 Less: Expenses as shown 18,479 &nbs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rental of the cold storage. The assessee sent printed notice to the storer and some of these notices were also found at the time of survey for taking delivery of the potatoes upto 15-11-2000 after paying the cold storage rent otherwise the storer's potatoes would be sold. It was argued that despite sending these notices the storers in order to avoid paying the rent left the potatoes there only. As a result of this, large quantity of potatoes had to be sold out due to lack of demand in the market. The assessee claimed to have sold 20138/13090 quintals of potatoes for Rs. 6,17,275 (total sale proceeds Rs. 6,52,054 less, expenses Rs. 18479 = Rs. 6,17,275). In support thereof it was contend copy of account of sale of potatoes made by the storer was filed before the Assessing Officer copy of the same was given to the CIT(A) also. These arguments and facts, it was submitted were rejected by the Assessing Officer holding that this copy of account was not found at the time of survey. It was submitted before the CIT(A) that the Assessing Officer has failed to appreciate the fact that at the time of survey the books of account (cash book, ledger, etc.) were with the Accountant Shri Ashok Aga....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of which it was requested that the addition be maintained. 11. Copy of the remand report were also made available to the assessee for his Rejoinder. 12. Considering the same, the CIT(A) came to the following conclusion:- "(5) I have considered the reasoning given by the Assessing Officer in the assessment order while making the additions. I have also considered the written submissions along with the paper book filed during the course of appeal proceedings as well as the remand report of the Assessing Officer and the rejoinder of the appellant on the Assessing Officer's report. Regarding the left over potatoes by the farmers/storer, at the time of survey, the Survey Team found spare printed notices, which were sent to storers for taking delivery of their potatoes up to 15-11-2000 otherwise their potato will be sold. On 7-12-2000, in the statement on oath also vide answer to question No. 17, Shri Pradeep Kumar, partner, stated that "potato left by the storers is being sold by us and one draft in the name of M/s. Ratan Cold Storage of Rs. 7046 was also found". Considering these evidences, the Assessing Officer accepted the position of left over potatoes by the Farmers/storers....
X X X X Extracts X X X X
X X X X Extracts X X X X
....und out of the loading and unloading register. In these circumstances, it cannot be presumed that appellant stored potato on its own account. 13. Aggrieved by this, the revenue is in appeal before the Tribunal. 14. Learned D.R. Shri C.L. Ambesh placed heavy reliance upon the Assessment Order and the Remand Report of the Assessing Officer reproduced in the impugned order. It was his contention that discrepancies have been noticed by the survey team statement of the partner has been recorded the evidences in regard to the newspaper etc., relied upon by the assessee have not been accepted by the Assessing Officer in view of the fact that the same was contradicted by the statement of the partner itself by virtue of the answer given to question No. 26 which has been reproduce in the assessment order itself. It was also his submission that the assessee could place no record of any left over potatoes or for that matter the potatoes which had gone bad. Thus in the absence of this relevant evidence there was no occasion for the assessee either to abandon the potatoes or treat them as left over potato. As such, it was vehemently contended that the addition should have been sustained. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; 22,909 Bags left by storer which were sold to recover rent on account of unprecedented conditions existing during the year 20,137 ------ Potatoes rotten and thrown 2,772" &....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... sale of potatoes left by the storers the position has been summarized as argued before the Tax Authorities in page 2 of the synopsis as under:- "Period After Survey Total 22-11-2000 - 7-12-2000 Qty. Value Qty. Value Qty. Value (Bags) (Bags) (Bags) Cash Sales 4464 1,34,205 15,673 5,17,999 20,137 6,52,204 Less: Exp. 7,980 &....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ---------- Addition 11,77,211" ---------- 19. On the basis of the above, referring to written synopsis, it was argued that the Assessing Officer has no evidence or basis for applying the rate of Rs. 138.50 per quintal. The details of the sales made were filed in the assessment proceedings. No discrepancy it was argued has been pointed out nor has it been referred in the course of the survey by the department. I....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... included in the commission of the parties also stood included has been ignored by the Assessing Officer in the Remand Report. The assessee's version that the sale price of even the good potatoes was in fact around Rs. 45.64 per quintal has not been assailed by way of any evidence let alone cogent evidence by the revenue. The Newspaper reports, copies of which have been placed at pages 86 to 89 of the Paper Book would show that notice in Dainik Jagran of 28-10-2000 had been taken out by the Cold Storage Association putting the persons who has stored their potatoes to notice of the fact that the storers of potatoes in the concerns named therein that in view of the drop in prices the storers of the potatoes should take their potatoes after making the payment upto 31-10-2000 as thereafter the cold storage would be under a compulsion to sell the potatoes in the market and only after the recovery of the outstanding rentals the farmers/storers would be paid left over if any. A perusal of the same shows that the assessee's name is found mentioned in the said notice at Sl. No. 5. Thus it is seen that public notice has been given by the assessee through the Association and as per the materi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ge in the stock to the tune of 11274 bags. On being asked the assessee stated that it was due to non-maintenance of loading and unloading register. The reply of the assessee is not acceptable as discrepancies in the books were noticed at the time of survey. Also the assessee failed to identify the buyer. The modus operandi of sale of potatoes is that storers sale their potatoes to the buyer but sale proceeds in the form of Draft are received in the name of Cold Storage. On receipt of draft the Cold Storage owner deduct the expenses like rent, advances given to the storers, if any, interest on advances, Bardana etc., from the sale proceeds and balance amount given thereafter to the assessee after getting the sign of the storers on the "Beejak". The assessee was asked to produce the Beejak vide the order sheets entry dated 17-2-2004. The assessee failed to produce the "Beejak" on which it is alleged that account of the storers are calculated on the Beejak and balance amount got received thereon from the storers. It is also evident that at the time of survey four drafts were found along with covering letter dated 5-12-2000 which is addressed to the Ratan Cold Storage. This cover....
X X X X Extracts X X X X
X X X X Extracts X X X X
....radeep Kumar. Both truck drivers stated that they brought the truck for loading potatoes at the instance of the owner of the cold storage. Raju Savita further stated that it was his fourth round of loading. Thus, shortage of the stocks of 11274 bags was in fact appertains to the assessee. This is evidence of the fact that this must have belong to the assessee for no D.O. for the said shortage exist which would have been the case had it belonged to the farmers. Also, no evidence at the site was found to suggest that specific owners of the said shortage were identifiable. Farmers who had given their specific consent for the sake of their potatoes by the cold storage owner. Accordingly, it only leads to the conclusion that the assessee dealt in "Own Trading". This further borne out by the statement of Shri Shyam Mohan Dubey and truck drivers - Raju Savita and Kanhaiya Lal recorded at the time of survey. Thus, shortage of stocks detected and the potatoes loaded through trucks for transportation and sale thereof has evidently belonged to the assessee. The undisclosed sale is estimated at 25000 bags on which net receipt is worked out as under:- Total undisclosed bags sold &....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ags, the same were left by the storers without paying cold storage rent. The absence of delivery order pointed out by the Assessing Officer it was submitted was evident from the fact that the storer did not come forward to taking delivery of their potatoes. Accordingly it was not possible for the assessee, to get the signatures of the storers as they refused to come forward. It was submitted that the assessee could not indefinitely wait for the storers to come forward as such a prudent business decision was taken. 24. It was submitted that the procedure is that at the time of storing their potatoes the same are received in their own Bardana (gunny bags) by the storers and is not received as loose potatoes as the Assessing Officer has mentioned in page 5 of his order. Accordingly, there was no occasion for the storers to take the Bardana from the cold storage owner and the Assessing Officer has verified this fact after summoning some of the farmers. 25. It was also pointed out that when the potato is taken out for sale the same is unloaded from the cold storage in the veranda. The bags are opened and the potatoes are spread out for cleaning and separating the damaged potatoes ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... no evidence in regard to abandoning of potatoes and non-receipt of rent has been placed on record by the assessee. It was also his submission that the contention of the assessee that the entries could not be made owing to the absence of the Accountant is not correct since according to the Assessing Officer there were certain entries which were never meant to be recorded. It was also his contention that if the argument of the assessee is accepted that the rent had been received which had not been recorded then how did the cash tally because then there would have been surplus cash found instead of what was recorded in the book. The absence of primary documents in regard to bags of potatoes was also questioned. Thus how the Accountant could have made appropriate entries it was submitted could not be clarified by the assessee. The claim of the assessee that the fact of unloading of 2000 bags in the veranda for sorting could not be proved from the loading and unloading register. It was also his submission that the alleged storer has admittedly stated he had no agricultural land and that his brother Shri Ram Saran had worked as a Palledar at some point of time and although his name appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....74,404 bags the Assessing Officer from third parties. (iii) Potato left by the storers which was sold 20,137 bags by the appellant. (iv) Bags of rotten potato thrown (accepted by 2,772 bags the AO) During the survey on 7-12-2000 loading and unloading register found was written up to 21-11-2000 thus unloading part of this register was incomplete and potato unloaded from 21-11-2000 to 7-12-2000 was not deducted from stock position of potato as on 21-11-2000. In the statement on oath on 7-12-2000 vide answer to question No. 23, Shri Pradeep Kumar told that shortage in stock is due to non-completion of unloading part of the register on 8-1-2004, in the course of assessment proceedings, details of 11274 bags found short on the date of survey was filed copy of which is also furnished as per page No. 90 of the paper book. Out of 11274 bags, the appellant sold 6900 bags itself. These 6900 bags were admittedly out of potatoes left by the storers without paying rent, for sale of these bags signatures on the delivery orders or consent of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding is not based on proper grounds. Therefore, this addition of Rs. 22,75,000 is deleted hereby." 29. Aggrieved by which the revenue is in appeal before the Tribunal. 30. Learned D.R. placed heavy reliance upon the Assessment Order and the Remand Report reproduced in the impugned order. On the basis of that it was his submission that the discrepancy in the books of account and the fact as found during the survey and as per the record made by the assessee having been brought on record. It is also his submission that the assessee has owned that it has done his own trading also. Apart from that there is evidence on record that there were certain registers and books wherein transactions were recorded which had never been recorded in its books of account. Apart from this, the statement of the truck driver has also been taken into consideration. In these facts the estimate of 25000 bags of potatoes not recorded in the books of account of the assessee has rightly been made by the Assessing Officer. As such, the addition made deserves to be deleted. 31. The learned A.R. on the other hand relying upon the submissions made before the Tax Authorities contended that the assessee had ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....so submitted that the prevalent practice is that small storers at the time of storing their goods in the cold storage may send their goods through some other persons and this fact alone on account of the fact that the goods may have been stored by some other persons who may have named itself does not prove that the assessee was doing its own trading of that magnitude. Accordingly, heavy reliance was placed upon the impugned order. 32. We have heard the rival submissions and perused the material available on record. On a careful consideration of the same, it is seen that the Assessing Officer has taken cognizance of the facts that discrepancies were found by the survey team and loading and unloading register was not found recorded up to date. The gate pass book also found by the survey team did not contain signature of the storer. Moreover, Statement of truck driver Shri Raju Savita showed that arrangements for various trips to Arhatiyas of different Mandies were being made by the assessee and on the date of the survey Shri Ram Singh had come to collect payment for 59 bags of potatoes which had been given on credit to the assessee concern at the rate of Rs. 30 per bag and Rs. 20 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity of the cold storage was over and above than what has consistently been argued by the assessee. The fact of potatoes found spread out in the veranda by the survey team has also been explained by the assessee consistently to show that as per the general practice the potatoes from the cold storage were unloaded in the veranda for sorting in order to separate good potatoes from the rotting potatoes before sending them. This also has been the consistent stand of the assessee which has not been demonstrated to be false. The apprehension of the Assessing Officer that the assessee exercised significant discretion, control and management over the stored potatoes of other storer in the face of the peculiar facts and circumstances demonstrated by the Newspaper reports, the public notice given in the local Newspaper and the prevalent market conditions at the relevant point of time which had been taken note of by the CIT(A) is easily explained. By these, the assessee canvassed that due to the flooding in the market of the new potato crop the potato prices hit rock bottom as such the old potato which stood stored in the cold storage was not collected by the storer in view of the fact that as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....drivers also recognise the Cold Storage and not necessarily the individual storers. Moreover, it is seen that the estimate of 25000 bags arrived by the Assessing Officer is without any basis. Accordingly, being satisfied by the reasoning and the findings arrived at therein, ground No. 1 raise by the revenue is dismissed. 34. Coming to the assessee's appeal qua ground Nos. 1 and 2, it is seen that the facts have been taken into consideration by the CIT(A) in the following manner:- "(7) As regards the statement of Shri Suresh Khubani, it was stated that at the time of survey there was no declared income the business was running and profit or loss cannot be worked out without finalizing accounts. In these circumstances the appellant declared a sum of Rs. 15,00,000 as income of firm M/s. Ratan Cold Storage which includes income of cold storage rent from storage of potato (income of rent from storage of potato is the main income of the cold storage business) and other items but due to leaving potato by the storers without paying cold storage rent the appellant's income went down. The appellant has given the computation of such income as follows- (1) Income declared by the appel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....subsidy towards rent which also resulted in short realisation of rent by Rs. 15,072 and thus the total income of the appellant went down by Rs. 9,13,717. The appellant has actually surrendered an income of Rs. 3,00,000 as against the original surrender of Rs. 15,00,000 and thus after accounting for the sum of Rs. 12,13,717 (Rs. 9,13,717 + Rs. 3,00,000), the short surrender comes to Rs. 2,86,283 (Rs. 15,00,000 + Rs. 12,13,717). As per the appellant the returned income of Rs. 5,24,921 takes care of this shortage. However, the same is not acceptable since the surrender is always over and above the income accounted for in the books and hence an addition of Rs. 2,86,293 out of the total addition made by the Assessing Officer is confirmed so as to take care of the surrender made by the appellant at the time of survey under section 133A of the Income-tax Act. Since the discrepancy and concealment of income and profits pointed out by the Assessing Officer on the basis of which several additions were made by the Assessing Officer as per the assessment order remained unsupported and the very basis of addition which was based upon the capacity of the cold storage did not survive, the other ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....id ground of the revenue, we are of the view the said issue is covered by the reasoning and the finding arrived at therein. Even otherwise no doubt the statement given in the course of the survey does not have the same evidentiary value as the statement which is recorded under section 132(4) during search and seizure operation. However, the facts remains that by virtue of making a surrender the assessee ensures that the survey proceedings come to an end. As such, having halted the survey proceedings on the basis of surrender of Rs. 15 lakhs. In the peculiar facts and circumstances of the case it is seen that the surrender to an extent was justified according to the assessee also as the assessee surrendered an amount of Rs. 3 lakh. Thereby admitting limited own trading though with some storers and various other discrepancies found and confronted during the survey. The matter being of estimate by the assessee to the extent of Rs. 3lakhs and the CIT(A) on facts of a further amount of Rs. 2,86,283 over and above the Rs. 3 lakh surrendered. In the peculiar facts and circumstances we find no good reason to interfere with the finding of the CIT(A) and hold that he was justified in maintai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es, books and other documents over and above the difference in the stock position as on 21-11-2000. The assessee, however, did not act in accordance with the surrender so made. He made a surrender of Rs. 3,00,000 only in the income returned by it as against the admitted surrender of Rs. 15,00,000. 3. During the course of assessment proceedings, the Assessing Officer confronted the assessee of all the materials and evidence that were found as a result of survey and had come in his possession. The replies given by assessee were considered. The sales and purchases were not found verifiable. There were discrepancies in the stock account. The material found as a result of survey revealed that the assessee has not accounted for income from rent etc., fully. The correctness and completeness of accounts was not there. In the return of income filed, the assessee himself had admitted an undisclosed income of Rs. 3,00,000. Under such glaring defects and accounts being not complete and correct, the Assessing Officer invoked the provisions of section 145 of the Act and rejected the accounts. The Assessing Officer taking note of the fact that the assessee has carried out own trading of potato....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; Rs. 15,00,000 (2) Total storage of potato 97313 bags or 82036 quintals expected potato storage rent (gross). Rs. 65,62,907 (3) Due to poor sale rates of potato of 18949 quintals/22,909 bags when left by the storers without paying cold storage rent. Out of this, 20138 bags potato were sold for Rs. 6,17,275 (against possible rent Rs. 15,15,920). Thus Short realisation in rent than expectation. Rs. 8,98,615 (4) Subsidy given in rent which also resulted in short rent Rs. 15,072 Total short in rent (3+4) &....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... balance Rs. 34,90,928 is deleted." 6. Having heard the parties and after careful perusal of the material on record with reference to the precedents cited at Bar, I find that under the peculiar facts of this case, the Assessing Officer had found that the accounts of the assessee are not complete and correct and as such, are not reliable. The same, therefore, stood rejected by application of section 145 of the Act. The ld. CIT (Appeals), however, sustained part addition to the extent of Rs. 2,86,283 out of total addition of Rs. 37,77,211 made by the Assessing Officer and allowed its appeal partly. This would mean that the assessee's ground in appeal on rejection of accounts stands dismissed. The assessee also did not carry the dispute on rejection of accounts further in appeal before Tribunal even though he is in appeal on certain other grounds. In that view of the matter, the assessee is taken to have accepted the decision to reject his books of account by application of section 145 of the Act. 7. The mandate of section 145 of the Income-tax Act, 1961 is that after rejecting the accounts, the Assessing Officer has to estimate the income in the manner provided under section 14....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessment in the manner provided under section 144 of the Act, the Assessing Officer, however, has to make what he honestly believes to be a fair estimate by way of honest guesswork. This principle is found laid by Privy Council in the case of CIT v. Laxminarain Badridas [1937] 5 ITR 170. The estimation of income by taking own trading of 25,000 bags in the present case, appears to be excessive. The over utilization of capacity at a particular time was by 7313 bags only as on the date of survey on 7-12-2000. Keeping in view the over utilization of capacity so found, the seasonal storage of potatoes, rotation of the same investment made in carrying out own trading during the entire year under consideration and all such factors that came into consideration of the authorities below and also the aforesaid principle as laid in the case of Laxminarain Badridas, it would be fair to correct the estimate that the assessee carried own trading of 6250 bags of potatoes in the whole year under consideration and on the basis of calculations made by the Assessing Officer, the unexplained investment including profits earned thereon is estimated at Rs. 5,68,750. By setting aside the order of the ld. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to estimate income from sale of potatoes left by farmers at Rs. 8,50,000 only as against Rs. 11,77,211 made by the Assessing Officer. The total additions, thus sustained on account of income from own trading, unexplained investment in Bardana and sale of potatoes left by farmers would equal to the amount of surrender of Rs. 15,00,000 made by the assessee's major partner having 50 per cent share in profits and gains of business at the time of survey. The ld. CIT (Appeals) herself is found to have accepted the fact that the surrender is always over and above the income accounted for in the books of account. The assessee did not dispute this finding nor shown the same to be perverse on facts. She, however, committed an error in sustaining the addition to the extent of Rs. 2,86,283 only when the assessee was not shown to have made any entries of the surrendered amount of Rs. 15,00,000 in his books of account. Furthermore, she proceeded to allow a set off of notional loss for short recovery of rent of potatoes left by the storers without taking into account the entire unexplained investment of Rs. 15,00,000 made by the assessee which constituted a relevant material for the purpose of as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,86,283 only over and above the income of Rs. 3,00,000 surrendered in the return of income. I, therefore, modifying her order, direct a further addition of Rs. 9,13,717 which will equal the additions finally sustained on account of estimated, sales of potatoes as own trading, unexplained investment in Bardana and sale of potatoes left by farmers for the reasons given hereinbefore. As a result of this, assessee's ground in appeal stands rejected and revenues grounds stand partly allowed. 12. In the result, the appeal by revenue stands partly allowed and that by assessee stands dismissed. THIRD MEMBER ORDER Per G.E. Veerabhadrappa, Vice President, As a Third Member.-In this case, the Judicial Member passed her order and the Accountant Member passed his Order. For making the reference as to the points of difference, there were serious differences between the Members and they ventured into writing different notes and the file shows that they did not ultimately gave their points of difference. The Hon'ble President nominated me as Third Member to resolve the differences emerging from the judicial orders of both the Members under section 255(4) of the Act. I, therefore, ignore t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for the farmers. The assessee has accepted the potatoes for such cold storage facilities. The potatoes were taken from the farmers. It so happened in the previous year relevant to the assessment year in question that there was a steep fall in the potato price and it was explained that after adding storage charges payable to the assessee, the price of the potatoes are required to be sold at Rs. 138.50 and the farmers did not take the delivery of potatoes forcing the assessee to sell those potatoes and realize the charges. The assessee although offered Rs. 15,00,000 in the course of survey proceedings, filed the return revising the said offer to a sum of Rs. 3,00,000. The Assessing Officer, however, ventured to make an addition based on the sale price of Rs. 138.50 per quintal of potatoes and made an addition to the extent of Rs. 35,00,000. When the matter was taken up before the CIT(A), he reduced the addition to the extent of Rs. 15,00,000, which was the figure the assessee originally offered to the Survey Party. Both the revenue and the assessee came up in appeal before the Tribunal. The ld. Judicial Member confirmed the order of the CIT(A) by dismissing both the appeals of the as....