TaxTMI 
TaxTMI 
2014 (5) TMI 269
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct passed by assessing officer and confirmed by first appellate authority is bad in law and deserved to be uncalled for. 2. The assessing officer ad first appellate authority has erred in law and on facts in making ad confirming respectively addition of Rs.17,50,000/-. The same deserves to be deleted. 3. The assessing officer and first appellate authority has erred in law and on facts in estimating Rs.5,89,324/- as income of Indore Brach. The same deserves to be deleted. 4. The appellant craves to reserve its right to add, alter, amend, or delete any ground of appeal during the course of hearing. 2. Briefly stated facts of the case as recorded in the order of ld.CIT(A) are that information was received from the RPF authorities t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the AO in the total income of the appellant. Further at para-6.3 of the assessment order the AO held that daily turnover of the appellant firm varies from Rs.15 to 20 Lacs and the rate of commission varies from Rs.150 to Rs.200 per lakh. He therefore worked out the commission income of the appellant for the year after considering the average daily transactions of Rs.17.50 Lacs and average rate of commission at Rs.175 per lakh at Rs.897,459 (for 293 working days) as against the commission income of Rs.308,135 disclosed by the appellant in the return of income. On this ground he held that the appellant has suppressed the commission income by Rs.589,324 but did not make separate addition on the ground that this commission income is included in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e authorities below failed to appreciate the fact when the cash was seized from the person who is the employee of the assessee-firm, it was categorically stated that money is being transferred from Branch office to Head office and a letter authorizing the person to carry the cash was also recovered from the employee of the assessee-firm. He submitted that the AO has wrongly assumed that notings on the kachcha-papers were in the nature of vital and primary documents. The notings are actually in the form of memoranda on kachcha-papers regarding receipts and payments and on the basis of these notings cash book was daily prepared by Shri Sanjay and, therefore, the kachcha-papers were destroyed after the notings are recorded in the regular cash ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as recorded u/s.132(1) of the IT Act who had stated that the daily turnover of transactions was around Rs.50,000/- to Rs.60,000/-. This statement has been totally ignored by the lower authorities even though the same was recorded under oath as per the provisions of section 132. He submitted that the AO has conveniently chosen to assume that the statement of Shri Vijaybhai reflected the true affairs. He submitted that the appellant-firm was never allowed an opportunity to crossexamine Shri Vijaybhai and, therefore, for that reason also his statement has no evidentiary value. In support of this contention, he relied on the following decisions:- (i) Prakash Chand Nahta vs. CIT reported at 301 ITR 134(MP). (ii) Heirs and L.Rs. of Late Lax....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessee-firm and they are maintained outside. It is the contention of the assessee that the accounts are maintained at head office. The fact that the assessee is maintaining books of accounts at head office is not disputed by the authorities below. From the records, it is transpired that no specific defect has been pointed out by the AO in respect of the books of accounts. The ld.CIT(A) has confirmed the addition on the basis that cash found in the possession of the employees of the assessee-firm as on 24/10/2008, clearly shows that the daily turnover was at Rs.17,51,000/- and has taken as commission income @ Rs.175/- per lac. This finding of the ld.CIT(A) is purely based on conjectures and surmises. Therefore, the view taken by the ld.C....