2011 (4) TMI 859

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....ort "the Act") against the order dated 29.9.2005 passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 807/Chandi/2001 relating to the assessment year 1998-99, claiming the following substantial questions of law:-   "i) Whether in the facts and circumstances of the present case, the action of the authorities below in making addition on account of valuation of closing stock of rice superfine, on its own presumption and ignoring the appropriate evidence adduced by the appellant, is legally sustainable in the eyes of law?   ii) Whether in the facts and circumstances of the present case, the action of the authorities below in diverting from its own views ....

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....e order dated 6.6.2001 partly allowed the appeal. Against the order of the CIT(A), the revenue as well as the assessee filed appeals before the Tribunal. The Tribunal vide order dated 27.9.2005 partly allowed the appeal of the revenue whereas the appeal filed by the assessee was dismissed. Hence, the present appeal by the assessee. 3. We have heard learned counsel for the appellant. 4. The issue for consideration in these appeals is whether the cash credit of Rs.45,000/- in the name of Shri Harbans Lal and claim of loss on account of Bardana by the assessee was justified. 5. The Tribunal while adjudicating the aforesaid issue of cash credit of Rs.45,000/- in the name of Shri Harbans Lal against theassessee had held that the capacity and g....

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....d and hence in appeal before us.   26. The ld. A.R. made the same submissions before us as were made before the authorities below that the amount of Rs.30,000/- had been received through encashment of FDRs in the name of Shri Harbans Lal and Rs.15,000/- has been separately received by draft. The ld. D.R., on the other hand, relied on the orders of authorities below. 27. On hearing the rival submissions and going through the orders of the authorities below, we find that creditor Shri Harbans Lal himself has admitted that he had advanced only Rs.30,000/- and has not received any interest on such loan and his sons are selling vegetables. In this way, the AO was right in concluding that Shri Harbans Lal is not a man of means and the neces....

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....paddy account i.e. 48348 qtls. which was packed in old bags. Similarly, rice bran was also filled in old bags. Rice superfine weighing 9160 qtls which required 9160 bags. The assessee purchased 4500 new bags on 10.3.98, 3000 bags on 19.3.98 and 2770 bags on 30.3.98 for Rs.21.90 each. It sold 10714 old bags for Rs.5 each on 31.3.98. The value of 9160 bags worked out at Rs.200604. Remaining old bags were valued at Rs.10 each for 75340 bags and thus the total worked out to Rs.9,54,000/- against Rs.8,45,000/- shown and the difference of Rs.1,09,004/- was added to income. Similarly, for transaction with M/s Prahlad Bhagat & Co. which was held to be collusive as rice was purchased at Rs.900/- per qtl. from them and supply was made at Rs.750/- per....