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TMI Blog2021 (5) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... t the total turnover was 19,75,167.60 Kgs as against 37,90,500 Kgs estimated by the Assessing Officer. Therefore, the ClT (Appeals) has rightly deleted the addition made by the Assessing Officer. This Tribunal do not find any reason to interfere with the order of the ClT (Appeals) and accordingly the same is confirmed. Similarly, all the other issues were also dealt with by the Tribunal in an elaborate manner i.e by examining the factual position, which was examined by the CIT(A) while granting relief to the assessee. Hence, we find that there is no question of law much less substantial question of law involved in this appeal. - Tax Case Appeal No.236 of 2021 - - - Dated:- 1-4-2021 - Honourable Mr.Justice T.S.Sivagnanam And Honourabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the books of accounts shows no cash withdrawals except on the said dates contra entries were made in the cash books ? v. Whether the finding of the Tribunal is proper especially when the Assessing Officer had granted allowance for secondary packing, given wastages in respect of polythene case and also took into account the arithmetical calculation of the estimated sales which come to 21,61,000 Kgs ? vi. Whether the finding of the Tribunal is correct especially when the assessee is not maintaining proper books of account and details of unaccounted purchase were arrived at by looking into the purchase bills of the packing materials which is 17.2% of the turnover and the said bills were submitted by the assessee himself? And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dresses of 76 creditors, to whom cash had been given. However, the Assessing Officer disbelieved the same on the ground that the transactions of purchase recorded in the books have not been proved and accordingly treated the same as unproved purchases. After considering the other issues, ultimately, the assessment was completed by order dated 30.12.2011 under Section 143(3) of the Act and the assessed income was determined at ₹ 17,57,25,071/-. 6. Aggrieved by the said order of assessment dated 30.12.2011, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals)-IV, Chennai [for short, the CIT(A)]. During the pendency of the appeal, the CIT(A) called for a remand report from the Assessing Officer and thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year under consideration at ₹ 18,19,44,000/- as against the sale declared by the assessee at ₹ 11,83,40,941/-. After considering the total sales, the Assessing Officer estimated the gross profit on the enhanced turnover at 18% and after allowing the overhead expenses, the net profit was determined at ₹ 2,57,81,465/- as against ₹ 11,82,054/- declared by the assessee. 10. Thus, the Revenue contended before the Tribunal stating that since the assessee consumed large quantity of packing material, the Assessing Officer rightly computed the gross profit by increasing the total turnover on the basis of packing material consumed. Therefore, it is contended before us that the CIT(A) committed an error in deleting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A), the cost of the packing material was rightly added and the average sale price of turmeric powder was arrived at ₹ 48/- per Kg and it was found that no prudent businessman would intend to add more weight to the packing material. Hence, the assessee contended that the Assessing Officer was not correct in adopting uniform weight for the sachets of different sizes and different weights for the same size. Further, before the Tribunal, the assessee sought to sustain the order passed by the CIT(A) by submitting that it was rightly found that the estimation of turnover was not scientific and that the estimation and enhancement of turnover as done by the Assessing Officer was imaginary. 12. The arguments of the learned counsel on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumed during the year under consideration should not be considered for the purpose of calculating the quantity of sales made during the year. Some of the packing material consumed during the year was actually used for turmeric powder manufactured and packed and was lying in the closing stock. The volume of such closing stock as on 31.03.2009 was 1,15,345 Kgs. The opening stock as on 01.04.2008 was 6,856 Kgs. Therefore, the net closing stock of 1,08,489 Kgs should also be considered as the resultant of the packing material consumed during the year under consideration. Therefore, the Assessing Officer's calculation of 37,90,500 Kgs actually represents the finished product manufactured by the assessee during the financial year 2008-09. To ..... X X X X Extracts X X X X X X X X Extracts X X X X
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