9911796707
TMI Blog1995 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 143(2) and 142(1). During the course of assessment proceedings he observed that the assessee company had carried out the activities of manufacture and sale of aerosoles valves and spray devices used in various types of perfumes and insecticides. He further observed that the assessee-company had also carried on with the job work relating to filling of spray devices and valve fittings on bottles and cans of different sizes. He further observed that during the year the assessee had declared sales of Rs. 50,15,728 and job work receipts at Rs. 42,90,845 the total whereof came to Rs. 93,06,573. He further noted that gross profit (g.p.) on the sales and job work receipts had been shown at 11.8% as against g.p. rate of 17.3% in the precedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2,85,000 to the gross profits declared. 2.2 On appeal before the CIT(A) the learned counsel for the assessee filed written submissions on8th Nov., 1989, wherein it was stated that the assessee had maintained full and complete records like cash book, ledger, manufacturing records etc. It was also stated that the assessee's activities were subject to levy of excise duty for which prescribed register had been duly maintained. It was further stated that the AO had not pointed out any specific discrepancy in the accounts maintained by the assessee. The learned counsel also submitted that the reasons given by the AO were not sufficient for applying the provisions of s. 145(1), proviso. It was further stated that the said method of accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO. 2.3 The learned counsel for the assessee Shri H.G. Malik invited our attention to the written explanation filed before the CIT(A). A copy of the said explanation is placed at pages 1 to 7 of the paper book. He submitted that all the purchases and sales were vouched; that quantitative particulars were maintained; that the method of accounting was not found to be irregular; that the auditors had given the details; that the prices of raw materials had increased without corresponding increase in the sale price; that stock register was also maintained on day-to-day basis and that the excise records were also kept. He, therefore, submitted that the addition of Rs. 95,000 as sustained by the learned CIT(A) was merely a guess work and oug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the learned counsel. In addition, the assessee is subject to levy of excise duty for which he has maintained the prescribed registers. It is also observed that the AO had not pointed out any specific discrepancy in the accounts maintained by the assessee. The CIT(A) has also sustained the addition of Rs. 95,000 by making general comments for non-furnishing of certain information as desired by the AO and has not pointed out any specific defects in the books of account of the assessee. We feel that the case law relied upon by the learned Departmental Representative is distinguishable on facts and that on the facts and in the circumstances of the present case, when the books of account of the assessee are also supported by the Excise rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to pages 9, 9-A, 9-C and 9-D of the paper book, where bills in respect of the said items are placed. In view of the foregoing, he urged that the disallowance of Rs. 15,000 ought to be deleted. 5.4 The learned Departmental Representative referred to page 6 of the order of the learned CIT(A) and submitted that the disallowance was on estimate basis. 5.5 We have carefully considered the submissions made by both the parties on this issue and have also perused the relevant record to which our attention was invited during the course of hearing. It is observed from the details filed by the learned counsel at pages 9 to 9-D that the bills related to calenders and diary costing between Rs. 15 to Rs. 35. The learned counsel has also stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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