9911796707
TMI Blog1984 (5) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... rty. 3. That the ld. AAC was wrong in confirming the disallowance out of car expenses and car depreciation for personal use to the tune of 1/4th. 2. The facts as observed by the ITO in his order are that the trading account do not account for the Tal rejection or cuts produced during the manufacturing process. The details in respect of total weight of rough stones put to manufacturing and that received after manufacturing was not made available. The closing stocks were valued on estimate. In the partner's account, on account of low personal withdrawal for household expenses addition of Rs. 19,044 had been made which could have been made from out of undisclosed sources of income of the firm. Consequent to a search which was done in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re himself that the value of the Tal and Cuts have been properly accounted for by the assessee and no satisfactory explanation was provided in respect of absence of proper manufacturing account. In not being able to provide reconciliation between the weights of rough cut stones and as manufactured as finished product, the ld. AAC went further and observed that the ITO though did not call for any explanation for the fall in the gross profit in the Panna ready account, he finally agrees with the ITO that it cannot be over looked that the partners' withdrawals were very low, specially when the partners' only source being from the firm. He finally goes on to observe that though the ITO had not pointed out any serious defect in respect of Panna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have been only in the manufacturing activity. But when the sales have been fully vouched, estimating the sales at Rs. 8 lacs was totally unwarranted. The ld. Departmental representative relied on the orders of the lowers authorities. 4. After hearing both the parties, we find considerable force in the argument forwarded by Shri Ranka that nowhere in the order of the ITO he had mentioned that the sales have not been vouched at all. In view of this, we hold that estimating the sales at Rs. 8 lacs is unjustified specially when the assessee's trade being export sales which are channalised and there being no finding to the contrary that some of the sales have not been booked by the assessee. We therefore, hold that estimating the sales at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,345 the addition to the gross profit would be Rs. 9,606. 6. Regarding ground No. 2, the ITO observes in his order that Rs. 5,597 was found by him to have invested by the partner Shri Nirmal Kumar Dugar in his property. The ITO says that since the partner bad only share income from the firm the amount of Rs. 5,597 must be out of the undisclosed sources of the firm. He accordingly added this amount as undisclosed sources of the firm. The assessee had argument before the AAC that this amount if at all, could be added only in the hands of the partner and not the firm. The AAC following reasoning of the ITO, upheld the inclusion of Rs. 5,597 in the firm's hands. Shri Ranka again put up the argument that the amount would have been and should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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