2010 (10) TMI 45

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....Bench 'C', New Delhi dated 21.3.2003 in ITA No. 5158/Del/98, Assessment Year 1994-95, on the following grounds:- "1. The Hon'ble I.T.A.T has erred in law and on facts in upholding the ad hoc addition of Rs.1,25,000/- out of addition of Rs.14,07,744/-, which has based on a comparable case, particularly in view of the fact that rejection of books of account has been upheld. 2. The Hon'ble I.T.A.T., has erred in law and on facts in upholding the view of C.I.T. (A) that confirmation letter filed by a person other than that whose confirmation was field in the assessment proceedings was not a fresh evidence under rule 46-A of I.T. Rules." We have gone through the order passed by the Assessing Authority and the CIT (Appeals) and find that....

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.... adopted by the appellant company is free from any defects. All the purchases are supported by purchase invoices. It is also highly presumptive that the appellant has made sales out of books of the unaccounted production, while the finished goods is as excisable commodity and accordingly every sale has to be on the strength of the Excise gate pass. All the purchases are recorded in the purchase book wherein full particulars relating to the purchases are recorded both in respect of quantity and value. In addition to the purchase book the appellant Company also maintained raw material register in which day to day issues are made in respect of quantity received, quantity issued and daily balances. In respect of finished production i.e. craft p....

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....ppellant company had been checked, examined and verified and auditor who gave certificate to the effect that proper books of a/cs as required by law have been kept by the appellant company. The ld. A.O., has also not disputed the maintenance of proper books of accounts and also the verifiability of purchases and sales. In absence of any adverse or contrary findings, the apparent being real deserves to be accepted." With regard to the addition of income on the ground of low yield, the CIT (Appeals) found that the comparison with the case of M/s. Khurana Paper Mill was not justified as the yield may vary, depending upon many factors. The CIT (Appeals) however, made ad hoc addition of Rs.1,25,000/-, which corresponded to the yield percentag....