2019 (5) TMI 2037

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....ircumstances of the case, the learned CIT(A) has erred in confirming the addition of Rs. 53,645/- as made by the learned ITO alleging unaccounted sales for excess quantity received from the job worker, which is absolutely erroneous and incorrect and needs to be deleted. 2. On facts and circumstances of the case, the learned CIT(A) has grossly erred in partly confirming the addition of Rs. 1,80,943/- as made by the learned ITO for alleged unaccounted investment in grey cloth on the ground of there being deficit in the quantity of goods sent by the appellant for job work against the goods received from the job worker without appreciating that there is actually no deficit in the quantity of goods sent since the said goods were receive....

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....randum records are not the main accounting records but the notings and jotings made by the assessee for his own records wherein entries are not made as per the actual date of grey purchases issued to / from mill or sales of entries are made sooner or later as per the convenience of the assessee since it does not form part of the main accounting records but is prepared for his own calculation and accounts. 6. Per contra, the ld. Sr. Departmental Representative relied on the order of the ld. CIT(A). 7. We have heard the rival submissions. We find that the addition made by the AO is on the basis of memorandum of records which is not periodical performance and such facts have been clearly stated by the assessee during the course of assess....

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.... Rule 46A of the Income Tax Rules. The ld. CIT(A) considered the remand report of the AO and observed that out of 12 parties, the bills and challans were verified by the AO during the proceedings in the case of eight parties and in the case of four parties namely M.L.Silk Mills, K., A.T.F, G.G. notices were returned unserved. The AO has worked out the quantity of grey cloths required for excess cloth of 82662 metres which includes the average shortage @ 10.27% and the value of this unaccounted purchases @9.71 works out to Rs. 8,02,657/-. It was submitted that the assessee has received the delivery of goods of grey cloth through challans of 54050.75 metres in the first three months. On the basis of remand report, the ld. CIT(A) has deleted t....