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Issues Involved:
1. Addition of Rs. 5,127 on account of shortage in manufacturing of silver utensils. 2. Addition of Rs. 30,000 on account of disallowance of salary claimed to have been paid to employees. 3. Addition of Rs. 95,700 on account of unexplained stock of silver. 4. Addition of Rs. 10,000 paid to Shri Shyamsunder for business purposes. 5. Addition of Rs. 50,000 for job work receipts and reduction of Rs. 1,27,688 to Rs. 50,000 on account of suppression of job receipts. Issue-wise Detailed Analysis: 1. Addition of Rs. 5,127 on account of shortage in manufacturing of silver utensils: At the time of hearing, the issue was not pressed by the counsel for the assessee. Hence, the view taken by the CIT(A) is confirmed. 2. Addition of Rs. 30,000 on account of disallowance of salary claimed to have been paid to employees: The assessee claimed a salary payment of Rs. 55,597, significantly higher than the previous year's Rs. 22,500, due to engaging a larger number of Karigars. The ITO disallowed Rs. 30,000 based on past history. The CIT(A) upheld this disallowance but proposed an alternative addition of Rs. 50,000 if the Rs. 30,000 disallowance was deleted. The Tribunal noted discrepancies in the CIT(A)'s figures but acknowledged the disturbance caused by the search on 22nd Jan., 1983. Considering the past history and the search's impact, the Tribunal confirmed the addition of Rs. 25,000 instead of Rs. 30,000. 3. Addition of Rs. 95,700 on account of unexplained stock of silver: During the search, 165.304 kg of silver was found. The assessee explained the stock, including 52.896 kg from old stock and 70 kg belonging to Subhakaran Shyamsunder. The ITO did not accept the explanation for 33.575 kg, adding Rs. 95,700 as unexplained income. The Tribunal noted that no unaccounted silver was found during the search and accepted the assessee's explanation that the discrepancy was due to close relationships and not recording entries timely. Therefore, the addition of Rs. 95,700 was deleted. 4. Addition of Rs. 10,000 paid to Shri Shyamsunder for business purposes: The assessee claimed the payment was for business purposes, including attending income-tax matters. The Departmental Representative argued it was for attending income-tax matters and should be considered under s. 80VV. The Tribunal directed the ITO to verify if a deduction under s. 80VV was allowed and to give full benefit under this section for the Rs. 10,000 paid. 5. Addition of Rs. 50,000 for job work receipts and reduction of Rs. 1,27,688 to Rs. 50,000 on account of suppression of job receipts: The ITO found a discrepancy of 92.216 kg of silver and added Rs. 1,27,688 for suppressed job receipts. The CIT(A) reduced this to Rs. 50,000, linking it to the disallowed salary. The Tribunal noted the assessee's credit entry of Rs. 40,000 to cover such discrepancies and considered the reduced workforce's impact on job receipts. Consequently, no further addition was warranted, and the Tribunal dismissed the Revenue's appeal. Conclusion: The appeal of the assessee is partly allowed, confirming some additions while deleting others, and the appeal of the Revenue is dismissed.
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