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TMI Blog2012 (11) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... es of cold-storage - Cold Storage capacity being 3382.8 MT - AO, calculated the storage capacity of cold-storage at 67656 bags of 50kg each – Calculate revenue @ Rs. 40 per bag – Assessee contended that capacity utilization for such a plant was 34000 to 36000 bags, for which a storage rate of Rs.30/- to Rs.40/- per bag was received – Held that:- As concluding from the facts of the case it would be fair and reasonable to upheld the addition to the tune of Rs. 4,00,000/-, with a view to meet the ends of justice. Issue partly allowed in favour of assessee - ITA No. 464/CHD/2011 - - - Dated:- 26-7-2012 - Ms.SUSHMA CHOWLA AND SHRI MEHAR SINGH, JJ. Appellant by : Shri Rohit Goel Respondent : Smt. Jaishree Sharma ORDER PER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. We have carefully perused the rival submissions, facts of the case and the relevant record. The brief facts of the case are that the assessee appellant filed return of income, declaring nil income on 31.03.2008. During the course of assessment proceedings, the AO, found that the balance sheet filed by the appellant with the return of income was signed by the Director of the company and the same was not audited by the Chartered Accountant. The appellant being a private limited company was statutorily required to get its accounts audited as per the Companies Act 1956. Also the company had defaulted in filing of balance sheet with the ROC. From the unaudited balance sheet the A.O. pointed out the discrepancies namely; a) the gross. r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or had produced Sh. Manjit Singh s/o Sh. Amar Singh from whom an amount of Rs. 1,60,000/-was shown as unsecured loan since the last ten years. He had stated that his father had possibly given the loan and for which no interest was charged. In another case, Sh. Gurmeet Singh S/o Gurnam Singh was produced, who also stated that he had given a loan of Rs. 1,80,000/- without interest some ten years back. No other person was produced by the appellant in whose names the unsecured loans had been shown. These loans were ranging from Rs. 50000/-to Rs. 2,56,500/- in the name of different persons for different years. No repayment had been received nor interest credited/ paid. In view of all this the A.O. rejected the books of account by resorting to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant and rightly made the estimate of income, for the purpose of addition u/s 144 of the Act. 6( i ) A bare perusal of the submission and the findings of the AO, as well as that of the CIT(A), clearly reveals that the books of account cannot be said to be complete or correct, hence, the rejection of the same by the AO and upholding of the same by CIT(A), cannot be faulted with. Therefore, this ground of appeal is dismissed and findings of the CIT(A) are upheld. 7. In Ground No.2, assessee contended that CIT(A) erred in upholding the addition of Rs.10,68,860/- made by the AO, without appreciating the facts and circumstances of the case. 8. We have carefully perused the rival submissions, facts of the case and the relevant r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to the submission made by the assessee appellant. Ld. 'AR' referred to the submission made by him before the CIT(A) . The relevant part is reproduced hereunder : The assessee may further submit that total load of electricity utilized by the assessee which included one motor (Heavy Duty /High Speed Amonia Compressor) of 40 HP and one water pump of / One HP, was 39.71 KW. It is amply clear that only one compressor of 40 HP with two cylinders was installed at the Cold Storage. ; Report of the surprise inspection of the XEN, Enforcement PSEB, Patiala on 23.10.2006, that is very much during the previous year ended on 31.03.2007, is submitted for the perusal of your kind honour, whereas HD Amonia Compressor of 40HP could bear load of cool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectricity load which is a deciding factor in the case of the assessee. It is, therefore, submitted, that the comments of the Ld. A.O. are misplaced." 10. Having regard to the above discussions and submission made by the appellant before the CIT(A) , we are of the opinion that having regard to the capacity and the charges referred to by the appellant, before the AO, and submission filed before CIT(A), it would be fair and reasonable to upheld the addition to the tune of Rs.4,00,000/-, with a view to meet the ends of justice. Accordingly, ground of appeal of the assessee is partly allowed. 11. Ground Nos. 3 4 are general in nature and need no separate adjudication, hence, the same are dismissed. 12. In the result, appeal of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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