2003 (2) TMI 148

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....s trading in groundnut oil, cottonseed oil, coconut oil, vegetable Ghee, etc. on semi-wholesale basis. During the assessment proceedings it has been noticed by the AO that due to change in partnership firm during accounting period relevant to asst. yr. 1989-90 the assessee computed total income in two parts and accordingly separate sets of final accounts are prepared and filed. The sale declared by the assessee in the first part was Rs. 1,93,28,948 and in the second part it was Rs. 1,35,33,366 totalling to 3,28,62,314. During the assessment proceedings it has been noticed by the AO that sales-tax authorities made spot visit on 15th Sept., 1989, and seized books of accounts, etc. During the accounting period the assessee has shown purchases ....

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....CIT(A) confirmed the addition made by the AO. The CIT(A) has also confirmed the action of the AO under s. 145(2) of the Act. 5. The learned authorised representative submitted that the AO has wrongly made the impugned addition whereas the assessee has shown a better GP in the year under consideration and it is immaterial whether the purchases were made from the above-mentioned parties or from other parties but in fact the purchases were made. He further submitted that in asst. yr. 1990-91 the AO has accepted the GP declared by the assessee at 0.76 per cent while making assessment under s. 143(3). He submitted a xerox copy of the assessment order which is placed in Para 5 of the assessee's paper book. The learned Departmental Representati....