1986 (11) TMI 134

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..... ncome and the Department is also in appeal for the addition being reduced from Rs. 1,20,000 to Rs. 60,000. The plea before us by the assessee was that the assessee who runs a Dal Mill in the year purchased various kinds of dal moth, etc. The purchases in respect of dal, moth, etc. were also made from agriculturists. The Department disbelieved the quantum of purchases in respect of month from some .....

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..... y those agriculturists. The plea before us was that the Department is not doubting that there have been purchases made and the Department is also not doubting that there have been any sales out a the books. They have placed reliance on the statement of the Sarpanch which was given perhaps on the hope that there would be some ore benefits granted to the village by the Government. They are also not .....

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..... d that no addition was called for at all and he was satisfied that the books cannot be said to be reliable. 2. We have given very careful consideration to the arguments of the parties. Considering the overall facts as they are, when the purchases are accepted in full as proper purchases and there is not evidence to the effect that sales have not been properly accounted for or sales have been mad .....

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