TaxTMI 
TaxTMI 
2021 (5) TMI 655
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....anation furnished, it be kindly held that the findings of the learned lower authorities that the assessee had sold sarky khali of Rs. 75894 without having any stock on that day are wholly wrong and unjustified and, therefore, such findings be quashed and the addition of Rs. 75894 be kindly deleted. (3) That on the facts & in the circumstances of the case and in law, and having regard to the explanation furnished, it be kindly held that the assessee had genuinely incurred transit business loss in soyabeen account at Rs. 102825. The findings of the learned lower authorities for not accepting such genuine loss are wholly wrong, unlawful and unjustified and, therefore, such findings be quashed and the loss claimed at Rs. 102825 be kindly accepted. (4) That on the facts & in the circumstances of the case and in law, and having regard to the explanation furnished before the learned lower authorities, the learned CIT(A) is not justified in sustaining the addition of Rs. 644750 for the alleged lower gross profit. The assessee submits that the said unjustified addition be kindly deleted (5) That on the facts & in the circumstances of the case and in Jaw, the findi....
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....ee had claimed closing stock of Soyabean Oil at Rs. 70,40,299/- for quantity of 1577.73 quintal at an average rate of Rs. 4462.29 per quintal. The assessee furnished the relevant details thereof. On verification of details, assessing officer observed that the assessee deals in Soyabean Oil that includes loose Soyabean Oil and packed Soyabean Oil with brand name "Kriti" from Kriti Industries India Ltd. Devas. However, no such separate details of Soyabean Oil were mentioned in the sales bills. The assessing officer was of the view that the assessee had understated the closing stock of Soyabean Oil by Rs. 1,40,643/-, therefore, he made addition. In this regard, further, assessing officer observed that the assessee made sales of "Sarki Khalli" without having stock in hand. Hence, he made an addition of Rs. 75,894/-. Further, the assessing officer made addition of Rs. 1,20,825/- by observing that in the quantitative details of Soyabean Oil account, the assessee has claimed loss of Rs. 26.85 quintals. He was asked to justify the loss, however no submission for explanation was offered, hence, the assessing officer made addition of Rs. 75,894/-. The assessing officer observed that in the c....
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.... the household expenses it was contended that sufficient drawings were shown by the assessee and his family members. The submissions made by the assessee reads as follows:- 1. Dealer of edible oils and grain merchant. 2.Ground no.1- Undervaluation of closing stock of soya bean oil Rs. 1,40,643/- a.AO page 2 para 4.2 - no difference in quantity as per AO and as per assessee, tax audit report PB 23 b.Rate per quintal (assessee) - average rate PB 70 c.Basis on which rate per quintal has been arrived at by Ld. AO is best known to him d.Uniform rate applied for entire purchases 3.Notice issued u/s 142(1) dated 12.03.2013 and fixed for hearing on 31.03.2013. Another notice was also issued on the same date fixing the date of hearing on 21.03.2013. [PB 73] 4.Assessment order passed on 26.03.2013 i.e. before the date of hearing. The order was passed without considering the submission of assessee which was filed in dak on 31.03.2013. 5.Ground no.2 - sale of sarki khalli without having any stock a.Posting error in the tally software b.Incorrect posting Entry of stock and invoic....
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.... closing stock of soya bean oil, sale without stock in hand and quantity loss of soya bean oil. 12.Ground no. 7 - CIT(A) after considering the documents under rule 46A sustained 13.Ground no. 8 - household expenses a.Assessee is aged about 73 years, betul is a small place b.Common mess and kitchen, joint family setup c.Married sons - income tax assessee, ITR on record d.Expenses of grandchildren incurred by their respective parents e.Expenses related only to assessee and his wife should be considered, ITR of wife also placed on record f.Burden of expenses of entire family cannot be shifted to one person. Family members have their income duly returned and meet their responsibilities. 6. Per contra Ld. Departmental Representative vehemently argued supporting the order of both the lower authorities. 7. We have heard rival contentions and perused the records placed before us. Effectively the assessee had raised 8 grounds of appeals. Ground No.1, 2 & 3 are with regard to the addition made for the discrepancies found in the books of accounts noticed by the Ld. A.O. Ground No.4,5,6 & 7 are with regard to rejecti....
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....,894/- on account of sales without stock in hand. 12. As regards Ground No.3 relating to the addition of Rs. 1,20,825/- on account of quantity loss of soyabean oil (inadvertently mentioned as 1,02,825/- in grounds of appeal), we find that in the quantitative details the assessee has claimed loss of 26.85 quintal. Ld. A.O made addition for Rs. 1,20,825/- for the alleged loss of 26.85 quintal for the reason that the assessee had not given necessary reply. However on perusal of the Audit Report we find that this loss was very well reported in the Tax Audit Report which is placed at page-23 of the paper book at Annexure- III to the Audit Report. The details shows that the assessee had opening stock of soyabean oil at 796.8 quintal and purchase during the year is 49946.96 quintal and sale during the year is 49139.25 quintal. The loss of soyabean oil is merely 0.05% of the total soyabean oil sold during the year which is in consonance with the business activity consistently carried out by the assessee. In these given facts no addition was called for the quantity loss in soyabean oil at Rs. 1,02,725/-. Thus Ground No.1,2 & 3 of the assessee's appeal are allowed. 13. Now we take up G....