9911796707
TMI Blog2006 (10) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, it was admitted and was taken as ground No. 5 of the appeal, after considering the oral objections of the learned Departmental Representative. 3. At the time of hearing, the learned Authorised Representative appearing on behalf of the assessee, Shri N.R. Mertia did not press ground No. 2. Ground Nos. 3 and 4 are formal in nature. Thus, ground Nos. 2, 3 and 4 stand dismissed. 4. Thus, ground No. 5 (additional ground) and ground No. 1, only now survive for adjudication. Other grounds of this appeal stand dismissed. 5. First, we will deal with ground No. 5, the additional ground, which relates to the action of the IT Inspector in taking statements during the course of search. This ground is connected with ground No. 1, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer estimated the physical stock and worked out the same on the basis of the statement of Shri Kailash Chand. Thus, a stock of Rs. 35,769 was found short as compared to stock as per books of accounts on the date of survey. The assessee did not make any surrender of income but deposited Rs. 35,000 as advance tax. The Assessing Officer, thus, made the trading addition of Rs. 5,68,437 after rejecting the books of accounts under section 145(1) and by applying higher GP rate of enhanced sales of sweets, milk and curd. The learned CIT(A) relates the trading addition to Rs. 1,26,224. The revenue has also taken ground No. 1 in this regard. Ground No. (1) of revenue s appeal has also been decided simultaneously. 8. We have heard the rival submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained. But the assessee had been issuing the sale vouchers in respect of sweets and milk on estimated basis, which did not indicate the quantity of the goods sold. The assessee was issuing sale vouchers at the end of day by counting cash. The assessee was asked to furnish names and addresses of the parties from whom he made purchases of raw materials, which were used for the manufacture of sweets. On the basis of information given by the firm, confirmation letters were obtained from certain parties. It was found that the assessee did not enter all the purchase bills in his books of accounts and some of such purchase bills, obtained from various parties, were not found recorded in the books of accounts of the assessee as under : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive impugned additions. Since, the statement of Shri Kailash Chand stands excluded and no other evidence which can support the trading addition was found during survey, in view of the fact that the combined GP rate in this year is better than the two preceding years as mentioned above. In our considered opinion, no further addition can be made in this account. As a result, additional ground of appeal is not allowed in its entirety and ground No. 1 of assessee s appeal is allowed whereas ground No. 1 of revenue s appeal is dismissed. 11. In revenue s appeal, the only other ground is ground No. 2 which relates to relief of Rs. 15,500 given to the assessee on account of job work receipts. 12. The facts of this issue arc that the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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