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TMI Blog2003 (11) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... register (hereinafter referred to as "CD register"). The Central Excise authorities issued a show-cause notice to the assessee on 2-9-1992. On the basis of the show cause notice, the Assessing Officer who processed the return filed by the assessee for the assessment year 1991-92 came to the conclusion that the following additions were called for :-- 1. On account of sales outside the books of account to M/s. Goyal Garments, K. Khaleed Bhasha, Laxmi Raj Jewellers and B.T. Parmar. Rs. 51,400 2. On account of sales outside the books to M/s. Panchratna, Patel Brothers and Shah Vivekkumar ukhraj Rs. 37,800 3. Sales outside the books to M/s. Ratna Sea Foods, Edco Steel, Deviprasad Sharma, Famous poultry, rishna Filaments Ltd., Laljibhai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ister. This show-cause notice is the basis for the additions made by the Assessing Officer in the assessment order. The principal contention of the assessee, which has been accepted by the CIT (Appeals), is that the purpose of maintaining the sales register and the purpose of maintaining the CD register are totally different and merely because certain items which find a place in the CD register may not have found a place in the sales register, it cannot be concluded that there has been a sales omission or suppression or any sales made outside the books of account. The explanation of the assessee is like this. The sale register records the complete details of the actual sales made by the assessee which are mostly through its dealers. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Only one bill may have been prepared for the dealer. When one purchaser of the weighing machine out of many weighing machines sold to the dealer wants to enforce the warranty, it may be difficult for the assessee to trace out the exact number and invoice in respect of that machine sold to the dealer. The same is the case in respect of the AMC. The AMC is normally entered into only after the warranty period is over and therefore it becomes more difficult to trace a particular entry made in the CD register in respect of the AMC to the original sale made to the dealer. Wherever possible, the assessee has tried to match the warranty card/AMC with the sale of the particular machine, but merely because of the inability of the assessee to match ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) has held that in view of the method of business followed by the assessee, it was clear that the CD register would include the total of all the machines sold through the dealers or through the assessee itself. He has therefore held that there cannot be a comparison between the CD register and the sales register which only reflects the sales made by the assessee to its customers. The mere fact that the assessee had taken the responsibility of giving a warranty or giving an AMC, according to the CIT (Appeals), would not ultimately mean that sales has been suppressed. In this view of the matter, he has deleted the addition. 6. There are certain additions which have been deleted on a different ground after an examination of the assessee's e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,000, a sum of Rs. 5,000 represents sales to Director, Plant Quarantine and Storage Department, Govt. of India. There is no question of suppression of sales made to Govt. of India, since the payment is made by cheque. In respect of the sales to Kaytee Cotsynth Ind. Ltd. and Prakash Jewellers, the CIT (Appeals) found that there were two sales in each case and all of them were recorded in the account books. They were rightly deleted by the CIT (Appeals). 9. With regard to the addition of Rs. 24,900, a perusal of the order of the CIT (Appeals) shows that he has deleted the additions on the ground that they were double additions. This finding has been arrived at by him after a perusal of the remand report and the assessee's explanation. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid is shown by the assessee, the sale is not shown. The CIT (Appeals) noted that even as on the date of search by the excise authorities, the delivery of the machine has not taken place and therefore held that there was no sale. In fact he has mentioned that even the Assessing Officer has accepted the fact that the delivery was pending in respect of both the items. Accordingly he has held that there is no case for making an addition for sales out of the books. These findings have not been challenged before us on the basis of any material. In these circumstances, the decision of the CIT (Appeals) is confirmed. 12. In the result, the decision of the CIT (Appeals) is confirmed in respect of all the grounds taken by the department, which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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