9911796707
TMI Blog2014 (3) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 1988-89. 2. The assessee, manufacturer of Dhodha, Patisa and other sweets had filed its return of income for the assessment year 1988-89 on 29.7.1988 declaring an income of Rs.61,600/-. Dhodha is a renowned sweet. It is liked by many. As mentioned on the packing boxes of Dhodha sweet of the assessee, the assessee is a gold medalist in the manufacturing of Dhodha. The assessee, thus, is a leading manufacturer of this sweet whereas it manufactures other sweets as well. 3. During examination of books of accounts by the Assessing Officer (hereinafter referred to as the AO), it was found by him that the assessee was not issuing cash memoes to the customers qua the sales effected by it. The assessee also admitted that cash memoes were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that some expenses had also been debited under the head "Salary" i.e. amounting to Rs.65,472/- but no such register had been kept by the assessee. In absence of the salary register, it was difficult for the revenue to verify the payments shown to have been made as salary to certain individuals. In the face of serious omissions and commissions, the assessee was asked by the revenue to produce necessary evidence regarding genuineness of the expenses incurred. Similarly, for consumption of milk, sugar and other allied items, no proper books of accounts had been maintained and when the assessee was called upon to produce, neither the milk sellers of the assessee nor any books of accounts were produced. The assessee, thus, was caught nappin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther in the facts and circumstances of the case, orders Annexures P1, P2 and P3 are legally sustainable? b) Whether in the facts and circumstances of the case, order of the ITAT in confirming the addition of Rs.96,170/- based on mere presumption ignoring the evidence put-forth by the assessee showing to the contrary, is legally sustainable? c) Whether in the facts and circumstances of the case, order of the ITAT in confirming the finding regarding the application of proviso to Section 145(1) of the I.T. Act without there being any specific averment as regards the infirmity in the method of accountancy employed by the assesseeappellant as mandated in the case of Moh. Umer Versus C.I.T. Bihar reported in 101 ITR 525, is legally sustainable? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.5,60,535/- and the weight of raw-material consumed has been mentioned at 38392 Kgs. whereas in fact it works out to 38892 Kgs including opening stock etc. The weight of sweets manufactured is estimated after giving a discount of 10% on account of burning losses, pilferage, wastage and other factors like consumption of milk and milk products etc. by the assessee's employees. I am not inclined to accept the plea of the learned counsel that burning losses and wastage tantamount to 25% to 30%. Accordingly, the net weight of sweet manufactured would work out to 35003 kgs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal in this regard as mentioned in para No.11 of the order (Annexure P-3) are reproduced as below: "On going through these observations, we find that the order of the CIT(A) in estimating total sales, application of G.P. rate and in granting a relief of Rs.61,680/- is most reasonable and well discussed and is based on the proper analysis of facts and the circumstances of the case of the assessee. In view of the matter, we do not find any illegality and infirmity in the order of the CIT(A), which is a well reasoned and well discussed and hence no interference is called from our side. Hence grounds of appeal Nos.2 to 5 of the assessee having no merits are rejected and the order of the CIT(A) with regard to the sustaining of addition of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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