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TMI Blog2013 (10) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... corded from debtors. The statements recorded by the assessing officer clearly establish that what was omitted by the assessee is only two zeroes and not three zeroes. Addition of Rs.1,50,000/- as cash credit from undisclosed sources – Held that:- Remanded the matter to the file of the assessing officer for due verification and decision in accordance with law, after giving reasonable opportunity of hearing to the assessee. - I.T.A. No.231 of 2013 - - - Dated:- 12-7-2013 - Kalyan Jyoti Sengupta And G Rohini, JJ. JUDGEMENT:- PER : Kalyan Jyoti Sengupta This appeal is preferred and sought to be admitted against the judgment and order of the learned Tribunal, dated 28.11.2008, in relation to block period from 1989-90 to 1999-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal was filed by the respondent herein against the appellant and the third appeal was filed by the department in the case of connected assessee M/s. G.K. Cold Storage, Mahabubabad. The appellant/respondent filed cross appeal against the judgment and order of the Assistant Commissioner of Income Tax in which the application of principle of peak credit method in quantifying the undisclosed income was considered. The learned Tribunal on this issue has found that the lower authority came to the fact finding that the peak credit concept has to be applied and it cannot be disputed that the concept of peak credit is one of the accepted methods of accounting principles for the purposes of computing the real profit, and came to the conclusion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or fresh computation after verification as to whether the amount of Rs.1,13,500/- form part of the addition of Rs.13,55,617/-. Next question is with regard to Rs.4,21,748/- on account of unaccounted investment in the purchase of chillies. The learned Tribunal on fact found that it was not in dispute that the assessee purchased chillies outside the books of account and the profit arising out of such purchase was already offered for taxation. Hence, there was no need for any further addition. The learned Tribunal on fact also found that the assessee purchased chillies outside the books of account, which was found during the course of search operations. The assessee has disclosed the closing stock to the extent of Rs.98,000/- in the block re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of block assessment proceedings. Therefore, the learned Tribunal correctly held that the sum of Rs.4,67,909/- cannot be treated as undisclosed income, and deleted the same from addition. While dealing with the assessee's appeal, the learned Tribunal dealt with the matter in the manner as follows. The first ground in this appeal was with regard to the addition of Rs.33,29,300/-. After examining the records and material, the learned Tribunal on fact found as follows. Merely because the assessee made coded entries even for small figures, like Rs.100, Rs.200 etc., that does not mean that the assessee has omitted three zeroes. On the basis of the material available on record, and the statements recorded from the various debtors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer to make addition of only Rs.1 lakh instead of Rs.10 lakhs with regard to the advances made by the assessee to Sri Ram Cold Storage. This factual computation and analysis cannot be gone into by this Court, as it does not involve any question of law. Next ground of the assessee's appeal was with regard to addition of Rs.1,80,000/- on account of repayment of loan from undisclosed sources in the case of B. Sriram Reddy. The learned Tribunal on this contention found that when the Commissioner of Income Tax (Appeals) has followed the peak credit concept, there is no need to make any separate addition in respect of Rs.1,80,000/- and that the assessee has explained the sources for repayment. Under such circumstances, the learned Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certainly the monies in question must have been introduced by the partners, as claimed by the assessee. Therefore, there is no question of making any addition in the hands of the present assessee. Thereafter, the learned Tribunal found that the spouses of the respective partners who have also contributed substantially, were assessed to income tax. They have also sufficient credit balances in their books of account, so as to advance funds to the assessee firm. In the circumstances, the addition of Rs.69,28,945/- as undisclosed income in the hands of the assessee firm is not warranted. Therefore, the finding of the Commissioner of Income Tax (Appeals) in deleting the addition made by the assessing officer was just and perfect. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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