TaxTMI 
TaxTMI 
2016 (8) TMI 265
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.... ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) deleting the addition of Rs. 1,23,987/- made on account of unaccounted sale of Kapas Shankar (cotton)? (c) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) deleting the addition of Rs. 71,89,691/- made on account of unaccounted purchase of Shankar Kapasiya (i.e. cotton seeds)? (d) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) deleting the addition of Rs. 1,65,231/- made on account of unaccounted purchase of Kalyan Kapas? (e) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of the Commissioner of Income Tax (Appeals) directing the Assessing Officer to make addition after computing the profit on unaccounted sale of cotton bales instead of the entire unaccounted sale of cotton bales of Rs. 27,71, 015/-? (f) Whether in the facts and circumst....
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....ssing Officer was not justified in making addition in the hands of the assessee. He, accordingly, deleted the addition of Rs. 5,93,853/-. The Tribunal, upon appreciation of the evidence on record, has concurred with the findings recorded by the Commissioner (Appeals). 5. Mr. Varun Patel, learned standing counsel for the appellant submitted that the Tribunal had erred in overlooking the observation of the Assessing Officer that M/s. Raghuvir Cotton Company had not filed return of income upto assessment year 2001-02 and that bills of M/s. Raguvir Cotton Company were prepared as an afterthought. 6. In this regard, it may be noted that the Commissioner (Appeals) has recorded a categorical finding of fact to the effect that M/s Raghuvir Cotton Company had filed a separate return of income. In the absence of any documentary evidence being produced on record to point out that the finding recorded by the Commissioner (Appeals), as concurred with by the Tribunal, is contrary to the evidence on record it cannot be said that the finding recorded by the Tribunal is in any manner perverse to the record of the case. Under the circumstances, the conclusion of the Tribunal being based upon c....
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....ons and that such a return had been accepted. The Assessing Officer in the remand report had not made any comment against the assessee's plea. The Commissioner (Appeals) observed that purchases recorded in X-13 and X-26 were identical and that the Assessing Officer had not given any adverse opinion on that point in the remand report. He, accordingly, found that the addition of the entire purchases was not correct and at best addition of the peak amount could have been made and deleted the addition of Rs. 71,89,691/-. The Tribunal, upon appreciation of the material on record, concurred with the findings of fact recorded by the Commissioner (Appeals). On behalf of the revenue, the learned counsel for the appellant is not in a position to point out any material to the contrary so as to dislodge the findings of fact recorded by the Tribunal. Under the circumstances, this ground also does not give rise to any question of law. 9. Proposed question (d) relates to deletion of addition of Rs. 1,65,231/- made on account of unaccounted purchase of Kalyan Kapas. The Assessing Officer made an addition of Rs. 1,65,231/- on account of unaccounted purchase of 4950 kilograms Kalyan Kapas. The As....
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....sales were accounted. However, the amount of sale difference does not represent the income of the assessee who had disclosed the sale. The Commissioner (Appeals), after considering the material on record and the submissions of the assessee, found that the sale of cotton bales was out of accounted stock and at best the profit could be added and not the entire sales. He, accordingly, directed the Assessing Officer to compute profit on sale of cotton bales and make addition of profit on sale of cotton bales and not the entire sales. The Tribunal concurred with the reasoning adopted by the Commissioner (Appeals) based on factual findings recorded by him. Having regard to the findings of fact recorded by the Commissioner (Appeals), as concurred by the Tribunal, it cannot be said that the course of action adopted by the Commissioner (Appeals), in any manner, suffers from any legal infirmity so as to warrant interference. 11. Proposed question (f) relates to addition of Rs. 8,10,665/- on account of unaccounted sale of Kala. The Assessing Officer found that in Annexure X-13 which belongs to the assessee firm, purchase of 313315 kilograms of Kala was recorded. Since X-13 belonged to the ....