TaxTMI 
TaxTMI 
1986 (10) TMI 64
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....(India), Britannia Bistcuit Co. Ltd. Cadbury (Fry) India Pvt. Ltd Chelpark Co. Ltd etc. For the assessment year under appeal, the assessee filed return showing loss of Rs. 1,62,293. The assessee disclosed sales at Rs. 38,67,977 with a gross profit at the rate of 4.58 per cent. in the immediately two preceding years, the assessee disclosed gross profit at the rate 5.72 per cent and 8 per cent. No reason for the fall in the gross profit was given before the ITO. According to the ITO, quantitative and qualitative verification of the purchases and sales was not possible and full details were also not furnished. He, therefore, estimated the assessee's additional income at Rs. 30,000. On appeal, the AAC pointed out that he had examined the conten....
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.... The departmental representative rightly drew our attention to page 1 of the assessee's paper book which reveals that the stock register was not at all maintained by the assessee. We have examined the matter and we are of the opinion that the AAC had given a conflicting finding in regard to the maintenance of stock register and we cannot say as to what extent the AAC was influenced by it. We, therefore, set aside the order of the AAC on this issue and restore the matter of his file to decide the issue afresh in accordance with law with a direction that he shall particularly record his finding as to whether the stock register was maintained or not, after allowing reasonable opportunity of being heard to the parties. 5. The next contention....
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.... assessee from records, and observed that since the addresses had been furnished and the confirmatory letters had been filed, there was no justification for making addition. According to him, since the confirmatory letters were not rejected nor any material brought on record, there was no basis for holding that the above cash credits represented assessee's income from undisclosed sources. He, therefore, deleted the addition of Rs. 38,500 made on account of cash credits. 6. We have heard the parties. We have also considered the paper book filed by the assessee as also the decision of the Hon'ble Patna High Court in the case of Addl. CIT vs. Bahri Brothers (P) Ltd. (1985) Taxation 78(1)-36. It is clear from the paper book filed by the asse....
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....has not examined the applicability of r. 6D. The order of the AAC is very sketchy on this point and he has passed order without collecting full facts. We, therefore, set aside the orders of the AAC on this point and restore the matter to the file of the AAC with the direction that he will consider the decision of their Lordships of the Allahabad High Court in the case of Brij Raman Das & Sons vs. CIT (1976) 104 ITR 541 (All) and collect full facts and thereafter pass a speaking order after affording reasonable opportunity of being heard to the parties. (2) The next dispute relates to deletion disallowance of Rs. 1,000 out of miscellaneous expenses claimed at Rs. 6,686. We have heard the parties and we find that the AAC restricted the dis....