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Issues:
1. Deletion of addition of Rs. 13,575 made by the ITO under the head "Income from other source" for the assessment year 1975-76. Detailed Analysis: The dispute in this case revolves around the deletion of an addition of Rs. 13,575 made by the Income Tax Officer (ITO) under the head "Income from other source" for the assessment year 1975-76. The ITO had made this addition based on a difference of Rs. 15,000 between the value of stock as per books and the value determined by the Commercial Taxes Officer during a survey of the assessee's shop. The ITO concluded that the difference of Rs. 15,000 represented the value of goods purchased outside the books of account, and after deducting an estimated profit, he added Rs. 13,575 as an investment in the purchase of goods from undisclosed sources. The assessee appealed to the Appellate Authority Commissioner (AAC) against this addition. The AAC considered the submissions and deleted the addition of Rs. 13,575 after reviewing the orders of the Commercial Taxes Officer and the subsequent appellate authorities. The AAC noted that the Commercial Taxes Officer had not prepared an inventory of the stock or seized any alleged excess goods valued at Rs. 15,000. The AAC concluded that the ITO's addition was not justified as there was no concrete evidence to support the claim that the assessee had purchased goods outside the books of account. The AAC's decision was based on the lack of proper documentation and inventory by the Commercial Taxes authorities. The Revenue appealed against the AAC's decision, arguing that the assessee had accepted the valuation difference and even paid a fine to avoid seizure of excess stock. The Revenue contended that the addition made by the ITO was valid as the goods purchased outside the books of account were not properly recorded. However, the counsel for the assessee defended the AAC's decision, emphasizing that there was no concrete basis to conclude that the assessee had undisclosed stock. The counsel highlighted the lack of proper inventory and documentation by the Commercial Taxes authorities. Upon considering the facts and submissions, the Appellate Tribunal upheld the AAC's decision to delete the addition of Rs. 13,575. The Tribunal found that there was no proper basis for the ITO's conclusion regarding the undisclosed purchase of goods by the assessee. The Tribunal noted the lack of inventory, day-to-day stock records, and weight details in the assessee's books, which undermined the ITO's addition. The Tribunal agreed with the AAC that the material available did not support the claim of undisclosed investment, and therefore, upheld the deletion of the addition. In conclusion, the appeal by the Revenue was dismissed, and the deletion of the addition of Rs. 13,575 made by the ITO under the head "Income from other source" for the assessment year 1975-76 was upheld by the Appellate Tribunal.
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