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2016 (8) TMI 265 - HC - Income TaxAddition on account of unaccounted sale of cattle feed - CIT(A) deleted the addition confirmed by ITAT - Held that - Commissioner (Appeals) has recorded a categorical finding of fact to the effect that M/s Raghuvir Cotton Company had filed a separate return of income. In the absence of any documentary evidence being produced on record to point out that the finding recorded by the Commissioner (Appeals), as concurred with by the Tribunal, is contrary to the evidence on record it cannot be said that the finding recorded by the Tribunal is in any manner perverse to the record of the case. Under the circumstances, the conclusion of the Tribunal being based upon concurrent findings of fact recorded by it upon appreciation of the material on record does not give rise to any question of law. Addition on account of unaccounted sale of Kapas Shanker (cotton) - CIT(A) deleted the addition confirmed by ITAT - Held that - AO did not choose to accept the purchase account in which quantity record had been made. It was the case of the assessee that all purchases so recorded were duly supported by the purchase bills and were in consonance with the data contained in impugned books and hence, there was no reason to treat all the purchases as unaccounted. The Commissioner (Appeals) observed that all the purchases were accounted for and that the Assessing Officer was not in a position to deal with the contentions raised on behalf of the assessee in the remand report and, accordingly, accepted the contentions of the assessee and deleted the addition of ₹ 1,23,987/- on account of purchase of Kapas Shanker. The Tribunal, upon appreciation of the material on record, concurred with the findings of fact recorded by the Commissioner (Appeals). Thus, the conclusion arrived at by the Tribunal is purely based upon the concurrent findings of fact recorded after appreciation of the material on record and hence, in the absence of any perversity being pointed out therein, the same does not give rise to any question of law. Addition on account of unaccounted purchase of Shankar Kapasiya (cotton seeds) - CIT(A) deleted the addition confirmed by ITAT - Held that - Commissioner (Appeals) upon considering the arguments of the assessee as well as the remand report submitted by the Assessing Officer and the material on record, found that the purchases recorded in X-13 pertained to the assessee firm and associate concern M/s Raghuvir Cotton Company which had filed return of income independently showing these transactions and that such a return had been accepted. The Assessing Officer in the remand report had not made any comment against the assessee s plea. The Commissioner (Appeals) observed that purchases recorded in X-13 and X-26 were identical and that the Assessing Officer had not given any adverse opinion on that point in the remand report. He, accordingly, found that the addition of the entire purchases was not correct and at best addition of the peak amount could have been made and deleted the addition of ₹ 71,89,691/-. The Tribunal, upon appreciation of the material on record, concurred with the findings of fact recorded by the Commissioner (Appeals). On behalf of the revenue, the learned counsel for the appellant is not in a position to point out any material to the contrary so as to dislodge the findings of fact recorded by the Tribunal. Under the circumstances, this ground also does not give rise to any question of law. Addition on account of unaccounted purchase of Kalyan Kapas - CIT(A) deleted the addition confirmed by ITAT - Held that - Commissioner (Appeals) found that the Assessing Officer had made this addition on the basis of the figures given by the assessee during the survey, while he had made gross profit addition on the basis of sales figure given by the assessee at the time of assessment proceedings and, accordingly, held that the Assessing Officer was not justified in making the addition and deleted the same. The Tribunal has concurred with the above findings of fact recorded by the Commissioner (Appeals). The conclusion arrived at by the Tribunal being based upon the findings of fact recorded by it upon appreciation of the material on record, in the absence of any perversity being pointed out therein, the same does not give rise to any question of law. Addition as unaccounted sale of cotton bales - CIT(A) deleted the addition confirmed by ITAT - Held that - The amount of sale difference does not represent the income of the assessee who had disclosed the sale. The Commissioner (Appeals), after considering the material on record and the submissions of the assessee, found that the sale of cotton bales was out of accounted stock and at best the profit could be added and not the entire sales. He, accordingly, directed the Assessing Officer to compute profit on sale of cotton bales and make addition of profit on sale of cotton bales and not the entire sales. The Tribunal concurred with the reasoning adopted by the Commissioner (Appeals) based on factual findings recorded by him. Having regard to the findings of fact recorded by the Commissioner (Appeals), as concurred by the Tribunal, it cannot be said that the course of action adopted by the Commissioner (Appeals), in any manner, suffers from any legal infirmity so as to warrant interference. Addition on account of unaccounted sale of Kala - CIT(A) deleted the addition confirmed by ITAT - Held that - Commissioner (Appeals), upon appreciation of the material on record, found that the assessee mentioned in the survey itself that it was not dealing in Kala and the associate concern M/s Raghuvir Cotton Company was dealing in the same. Moreover, the sale of Kala had been reflected in the transactions of the associate concern for which the return had been filed and that the Assessing Officer had not pointed out anything adverse in the remand report filed by the Assessing Officer. He, accordingly, deleted the addition made by the Assessing Officer. The Tribunal concurred with the findings recorded by the Commissioner (Appeals). The conclusion arrived at by the Tribunal being based upon concurrent findings of fact recorded by it, in the absence of any perversity pointed out therein, does not give rise to any question of law. Addition on account of unexplained stock difference - CIT(A) deleted the addition confirmed by ITAT - Held that - Commissioner (Appeals) accepted the contention of the assessee and found that the Assessing Officer had already made addition of gross profit of various items and that the same addition cannot be made again and deleted the same. The Tribunal concurred with the reasoning based on factual findings recorded by the Commissioner (Appeals) and upheld the same. Having regard to the fact that the Assessing Officer had already made addition of gross profit of various items, the Commissioner (Appeals) was justified in holding that the same cannot be made again. The Tribunal, therefore, did not commit any error in upholding the findings recorded by the Commissioner (Appeals). Revenue appeal dismissed.
Issues Involved:
1. Unaccounted sale of cattle feed. 2. Unaccounted sale of Kapas Shanker (cotton). 3. Unaccounted purchase of Shankar Kapasiya (cotton seeds). 4. Unaccounted purchase of Kalyan Kapas. 5. Unaccounted sale of cotton bales. 6. Unaccounted sale of Kala. 7. Unexplained stock difference. Detailed Analysis: 1. Unaccounted sale of cattle feed: The Assessing Officer (AO) made additions totaling ?5,93,853/- for unaccounted sales of cattle feed, including ?21,150/- for bogus sales, ?1,23,021/- for sales recorded in bill books but not in regular books, and ?4,49,682/- for sales entered in sale note books but not billed. The Commissioner of Income Tax (Appeals) [CIT(A)] found that the sales were already accounted for in the books produced during assessment and were included in the gross profit addition. The sales of ?4,49,682/- pertained to a separate concern, M/s. Raghuvir Cotton Company, which filed separate returns. The Tribunal concurred with CIT(A)'s findings. The High Court upheld this, noting no documentary evidence to contradict the concurrent findings, and ruled no question of law arose. 2. Unaccounted sale of Kapas Shanker (cotton): The AO added ?1,23,987/- for unaccounted sales of Kapas Shanker, rejecting the purchase account's quantity record. The CIT(A) observed that all purchases were accounted for and supported by bills, and the AO failed to counter the assessee's contentions in the remand report. The Tribunal agreed with CIT(A), and the High Court found no perversity in the findings, ruling no question of law arose. 3. Unaccounted purchase of Shankar Kapasiya (cotton seeds): The AO added ?71,89,691/- for unaccounted purchases of Shankar Kapasiya, claiming only a fraction was recorded in the books. The CIT(A) found the purchases recorded in X-13 included transactions of M/s Raghuvir Cotton Company, which filed independent returns accepted by the AO. The Tribunal concurred, and the High Court noted no contrary material was presented, ruling no question of law arose. 4. Unaccounted purchase of Kalyan Kapas: The AO added ?1,65,231/- for unaccounted purchase of Kalyan Kapas, based on a discrepancy between the survey figure and the quantity in X-13. The CIT(A) found the quantity was recorded in the books and entered in impounded records ignored by the AO. The Tribunal agreed, and the High Court found no perversity in the findings, ruling no question of law arose. 5. Unaccounted sale of cotton bales: The AO added ?27,71,015/- for unaccounted sale of cotton bales, treating the difference between expected and physical stock as unaccounted sales. The CIT(A) found the sales were from accounted stock and directed the AO to add only the profit element. The Tribunal concurred, and the High Court found no legal infirmity, ruling no question of law arose. 6. Unaccounted sale of Kala: The AO added ?8,10,665/- for unaccounted sale of Kala, attributing purchases recorded in X-13 to the assessee firm. The CIT(A) found the purchases pertained to M/s Raghuvir Cotton Company, which filed returns reflecting these transactions. The Tribunal agreed, and the High Court found no perversity in the findings, ruling no question of law arose. 7. Unexplained stock difference: The AO added ?11,16,568/- for unexplained stock difference, treating it as unexplained investment. The CIT(A) found the AO had already added gross profit for various items and could not do so again. The Tribunal concurred, and the High Court upheld the findings, ruling no question of law arose. Conclusion: The High Court dismissed the appeal, finding that the Tribunal's order, based on concurrent findings of fact and appreciation of evidence, did not give rise to any substantial question of law warranting interference.
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