TaxTMI 
TaxTMI 
2006 (9) TMI 126
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....nal was justified in confirming the addition of Rs. 3,58,824 in the hands of the appellant-firm by holding on extraneous considerations and by ignoring the relevant materials on record that the assessee-firm and its partner, Shri Prabhast Chandra Saha were the same entity? (2) Whether, on the facts and circumstances of the case, the findings of the Tribunal to the effect that the appellant-firm and its major partner, Shri Prabhash Chandra Saha were the same entity was vitiated and perverse by the use of irrelevant consideration and by ignoring the relevant materials on record and in that view of the matter, whether the upholding of such addition was sustainable in law? (3) Whether, on the facts and circumstances of the case, in confirming....
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.... profit due to unsuitable work site, higher labour charges, etc. The Assessing Officer noticed that the expenses for purchase of raw materials were not vouched for and no stock register was maintained and that the drawings of the partners were low and incompatible with their standard of living. For these reasons, the Assessing Officer added a sum of Rs. 40,000 as profit at 11 per cent. identical with other assessees during the relevant period. Further, the Assessing Officer found that the cheques amounting to Rs. 15,000 and Rs. 26,819 totalling Rs. 41,819 were not credited to the bank account and hence, treated this amount as income of the assessee from undisclosed sources. The Assessing Officer found that cheques amounting to Rs. 1,86,762 ....
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.... of Income-tax (Appeals) deleted the addition of Rs. 40,000. There was no appeal by the Revenue before the learned Tribunal and, therefore, the order of deletion passed by the Commissioner of Income-tax (Appeals) attained finality. With regard to the addition of Rs. 3,58,824, after consideration of the materials on record, the Commissioner of Income-tax (Appeals) found that the Assessing Officer nowhere stated that the assessee executed any other work not accounted for in its return of income against which some payments were received. The partnership firm was executing the contract orders issued in favour of the financing partner Sri Saha who is an enlisted contractor, and the firm has a liability to explain the value of the contracts assi....
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....ounts have been duly accounted for and this is discernible from the assessment order itself and the other materials available on record. The statement of contract works of the firm and the copy of the ledger account of the major partner, if properly scrutinized, will clarify the misgivings. We have examined the records produced by Mr. Bhuyan, learned counsel for the Revenue. The cheque amount of Rs. 15,000 and Rs. 26,819 totalling Rs. 41,819 have been credited to the ledger account of the major partner. The deposit of Rs. 1,86,762 is also discernible from the records. The Assessing Officer appears to have failed to take note of the same. That apart, the statement of the contract works executed by the assessee-firm shows that the value of t....