9911796707
TMI Blog1986 (1) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions of sale and purchase of Khal Binola were made through its commission argent M/s Deepak Kumar Co. and the transactions resulted in a loss of Rs. 1,29,967. The ITO had recorded the statement of a working partner of the firm or M/s Deepak Kumar Co. who had alleged that account books of his firm have been lost. The bills in respect of sales and purchase made through M/s. Deepak Kumar Co. were not filed. The partner of M/s Deepak Kumar Co. could not disclose the exact name of the parties from whom the purchases were made or to whom the Khal Binola was sold. In these circumstances, the ITO as well as the CIT had doubted the genuineness of the transactions. The CIT had also observed that for want of evidence the assessee must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the firm of commission agents. It also could not produce vouchers for sale and purchase of Khal Binola. Since Khal Binola was purchased and sold through the firm of commission agents, it is reasonable to expect that vouchers for sale and purchase of commodity must be with the commission agents. Shri Vijay Kumar, who is a partner of that firm was produced before the ITO and his statement was recorded. Shri Vijay Kumar had stated that his books of accounts had been lost in transit while he was returning from the ITO after completion of his assessment. Since the account books of that firm had been lost, it was not within the power of the assessee to summon or produce such books of accounts. It is also relevant to mention here that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... granted to the same. Thus genuineness and existence of that firm cannot be doubted. The assessment order further suggests that books of account had been produced before the ITO. The said firm was dealing in food grains and also carrying on the commission agency. These facts go one way to support the assessee s contention that it had transacted sales and purchase of Khal Binola through that firm. Paper Nos. 5 and 6 of the assessee s paper book are the copies of the assessment orders made by the sales-tax authorities relating to the assessee firm. A perusal of the assessment order of sales-tax indicates that the assessee had shown the transaction as tax free tools sales. It has been argued before us that no sales-tax was payable on the sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t directing the ITO to allow the claim after taking the receipt for charity." Ground Nos. 4 and 5 of this appeal had been disposed of by the CIT by a cryptic reading the rest of the grounds were neither argued nor pressed and are, therefore, treated as rejected. Learned counsel for the assessee has urged that the CIT has given no finding on merits and as such his order on the point is bad in law. On the other hand, the Departmental Representative has argued that order of the CIT suggests that these grounds had not been pressed. The mere fact that no argument in favour of these grounds had been advanced before the CIT, it does not mean that the grounds were not pressed by the assessee. Even if no argument had pressed by the assessee. Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure should have been applied in the year in question as well, and there could be a departure from such practice only for bona fide reasons. According to him, the chance has been made by the assessee simply because there was a sudden rise in the price of silver and the assessee wanted to reduce his income, and as such his action lacks good faith. It is true that in the previous years, the assessee had valued the said silver according to the market value prevailing at the time of the close of the year but that fact by itself can be of little assistance to the Department. There is force in the contention of the assessee that by mere rise in the prices of stock-in-trade the assessee does not derive any income. It was also urged that the silver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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