1979 (2) TMI 127

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..... xcessive rains which affected the yield adversely and that more polishing had to be done due to which yield of ghutta had gone up. None of these reasons found favour with the ITO as they were go general nature. He found that many other manufactures in the area had disclosed a yield of 67.5 per cent. He adopted this rate for the assessee also. On this basis, he worked out a shortage of 320 qtls. of rice. He estimated its cost at Rs. 96 per qtl. Rs. 30,720. This amount was added by him to the total income of the assessee. 2. The assessee appealed to the AAC. an additional reason was given to him that the assessee had made purchases of more than half of paddy on the earlier part of the season which was moisture laden owing to excessive rains .....

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..... the books of the assessee at all or were found to have been recorded at a later date thereby suggesting that the assessee had made the payment out of undisclosed income. He also examined those parties and allowed the assessee an opportunity of cross-examination. After being satisfied that the assessee had failed to explain the source of such payments which were mostly in cash, he held that amounts had come out of the assessee's undisclosed income. He found out the peak of the such amount which according to him worked out at Rs. 13,000. He brought this amount to tax as the income of the assessee. Similarly, he added four other smaller amounts aggregating Rs. 1,516 practically for the same reasons as they too were found not recorded in the b .....

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..... dit of the entire amount was only Rs. 12,081 and further that no separate addition should have been made for the amount of Rs. 1,516 which should have been treated to have been covered by the above peak. the third submission was that the assessee did not have any other source of income and, therefore, the above amount should have been treated to have come out of its rice business and should have been set off against the addition of Rs. 20,000 sustained by the AAC. this was based on the principle that double addition was not permissible under the IT Act. The learned Departmental Representative while submitting that it was s. 69 of the Act which applied to the case submitted before us that the facts required to be reinvestigated in the light .....

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