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Issues:
1. Allowance of relief in trading account and carriage receipt. 2. Rejection of books of account and estimation of sales and net profit rate. 3. Challenge to the relief allowed by the CIT(A) in profit on carriage receipts. 4. Charging of interest under section 217. Analysis: Issue 1: Allowance of Relief in Trading Account The Revenue appealed against the allowance of relief of Rs. 34,000 in the trading account and carriage receipt. The Assessing Officer made an addition based on excessive coal consumption by the assessee, leading to an alleged extra production of bricks not accounted for. The CIT(A) upheld the rejection of account books but adjusted the sales and net profit figures. The Department argued for the addition made, while the assessee's counsel presented evidence supporting the consumption rate of coal and past accepted profit rates. The Tribunal found the addition unjustified, considering the reasonable consumption rate, lack of evidence of sales suppression, and past accepted profit rates, leading to the deletion of the part addition. Issue 2: Challenge to Relief in Profit on Carriage Receipts The Revenue challenged the relief granted by the CIT(A) in the profit on carriage receipts. The assessee contested this in a cross objection. The Assessing Officer estimated the profit from carriage receipts due to the absence of account books. The Department argued for the reasonableness of the estimate, while the assessee's counsel claimed the 8% profit rate shown was reasonable. The Tribunal noted the lack of details on payments for carriage expenses and upheld the CIT(A)'s reasonable estimation of profit from this source, rejecting both the Revenue's and the assessee's contentions. Issue 3: Charging of Interest under Section 217 The only other ground in the assessee's cross-objection related to the charging of interest under section 217. The assessee requested relief based on the final income determination. The Tribunal found the request reasonable and directed the Assessing Officer to charge interest under section 217, if applicable, based on the income determined in the Tribunal's order. In conclusion, the Tribunal dismissed the Revenue's appeal while partly allowing the assessee's cross-objection, emphasizing the importance of reasonable estimations in the absence of account books and supporting evidence.
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