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TMI Blog2014 (3) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... products etc. by the assessee's employees - The weight of dhoda manufactured is taken to 65% and weight of other sweets is taken at 35%. This is being taken at estimated figure since assessee has not disclosed the formula for manufacturing dhoda being a trade secret - the entire issue concerns facts and attending circumstances and there is no legal issue for consideration – Decided against Assessee. - I.T.A. No. 50 of 2000 - - - Dated:- 28-2-2014 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Mr. Aalok Mittal, Advocate For the Respondent : Mr. Vivek Sethi, Advocate ORDER Dr. Bharat Bhushan Parsoon, J. This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to them was to the tune of Rs.7,24,604/-. 4. When report prepared by the tax officials was sent to the assessee, the assessee desired to cross-examine the said purchasers. Those witnesses were called after issuing notices to them under Section 131 of the Act. When after cross-examination of the witnesses, large scale discrepancies were found in the accounts, the assessee was called upon to produce cash memoes which were issued by him to various customers for a particular period i.e. from 1.4.1987 to 31.3.1988. Cash memoes produced by the assessee were only from 18.10.1987 to 31.3.1988; these revealed that even serial number of cash memoes had not been printed on the bills and the bills used to be filled in by hand, whenever it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Again assessee-firm felt aggrieved and had preferred an appeal before the Tribunal. The Tribunal while deciding the case on 4.11.1999, upheld the order of the CIT(A), whereby addition of Rs.96,170/- had been made. 8. Hearing has been provided to counsel for the parties while going through the paper book. 9. Counsel for the assessee has urged that there was no material worth credit and integrity to dislodge the accounts of the appellant-firm. It is claimed that books of accounts of the assessee were wrongly rejected and results of the accounts reached by the assessee, were wrongly ignored. It is claimed that when books of accounts had been left aside, then the revenue should have collected its own evidence to come to a finding distinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions made by the AO in order (Annexure P-1) dated 31.3.1989 are noteworthy: If the assessee was right in his approach, then certainly he should have produced the said Bahi in which the record of purchase of milk was kept. All these facts clearly show that the books result shown by the assessee are not subject to any verification and the provisions of section 145(1) are clearly applicable. If on the basis of calculations made by me regarding the sale of Dhodha at the Bus Stop was negligible sale of Dhodha at other places although it is not a fact, yet I estimate the sales of the assessee at Rs.13,50,000/- and apply G.P. Rate 25.10% as shown by the assessee. This will mean an addition of Rs.1,57,850/- in the trading account. 13. Agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other sweets, the rate varied between Rs.14/- per Kg to Rs.20/- per Kg. Since exact bifurcation is not possible, the average rate of Rs.18/- per Kg is applied. Accordingly, the total sales would work out as under: Weight in KGs Rate in Rs. Value in Rs. i) Dhoda manufactured 22752 39/- 8,87,328/- ii) Others. 12251 18/- 2,20,518/- 35003 Total Sale: 11,07,846/- To the sales so estimated, a rate of 25.10% is applied as shown and accepted by the AO. This would mean gross profit of Rs.2,78,070/- as against this, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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