9911796707
TMI Blog1986 (2) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... 1982 arise out of the cross-appeals by the assessee and the Department in relation to the assessment for the assessment year 1972-73. ITC No. 19 of 1983 pertains to the assessment year 1974-75. For the assessment year 1971-72, the Income-tax Officer rejected the books of account of the assessee and made an addition of Rs. 18,26,000 to the profits disclosed by the assessee and this figure was subsequently rectified to Rs. 14,00,000 by the Income-tax Officer himself. The Appellate Assistant Commissioner reduced the addition to Rs. 2,50,000. Both the assessee and the Department appealed to the Income-tax Appellate Tribunal which dismissed the Department's appeal and partly allowed the assessee's appeal restricting the addition only to Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consolidated order of the Tribunal on the appeals preferred both by the assessee and the Department in relation to the assessment year 1971-72. Learned counsel for the Department invites our attention to the following passage in the order of the Tribunal which, according to him, contains the substance of the Tribunal's finding: " We, however, are of the opinion that the other major defects in the assessee's books of account, namely, discrepancies relating to sale of goods not available in the despatch department remained unexplained. We have already mentioned above the various explanations offered by the counsel for the assessee before us. Some of these have been taken up for the first time before us while some were taken before the low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years 1972-73 and 1974-75 deserve to be and are dismissed. But, even so far as the assessment year 1971-72 is concerned, we find that the passage relied upon by the learned counsel for the Department and the argument sought to be made out of it are not justified, as they ignore the context and the background in which these observations have been made. For the assessment year 1971-72, the Income-tax Officer had listed certain specific defects and discrepancies which are neatly summarised by the Appellate Assistant Commissioner in paragraph 2 of his order. The Appellate Assistant Commissioner proceeded to discuss the various defects pointed out by the Income-tax Officer and a perusal of his order clearly shows that he discounted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,00,000. The Appellate Assistant Commissioner calculated the shortage at 77,516 kgs. and sustained the addition of Rs. 2,12,000 on this account. Before the Tribunal the case of the assessee was that the weight of the scrap accounted for by the assessee had not been properly calculated and it was explained that if properly calculated, it would be seen that there was no discrepancy at all. The Tribunal observed that the nature of the defect in this regard was also not very serious since it depended entirely on estimate. They observed that it will not be sufficient to hold that there was any actual suppression of the goods and that such suppression had been either sold or was converted into goods. At the most, what could be said was that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Officer. In that year, i.e. 1970-71, the figure was Rs. 16,400 and this was the addition that was sustained by the Tribunal in that year. It is in this context that the reference to the statement of counsel at the bar in the order for this year has to understood. The position being the same, the conclusion of the Tribunal was that for this year also, the addition had to be restricted to the extent of specific discrepancies found between the quantities produced and the quantities sold. In the earlier year, the figure of such discrepancies was Rs. 16,400 and the Tribunal ascertained from the counsel for the assessee that for the year presently under consideration, the quantum of such discrepancies would come to Rs. 15,000. In other w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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