9911796707
TMI Blog1978 (8) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... inal return on 31st July, 1972 showing therein an income of Rs. 74,620. However, it filed a revised return on 11th Sept., 1972 wherein it showed an income of Rs.77,020. The ITO accepted the explanation of the assessee-appellant for filing the revised return. The ITO issued notice under s. 143(2) of the IT Act, 1961 (hereinafter referred as the Act.) In response to it, Shambu Nath, accountant along with D.A., C.A. and H.K. Goyal I.T.P attended the assessment proceedings before the ITO from time to time. The ITO on discussion, scrutiny and examination of the return and books of account found as under:- "Narma Yield of rui Shortage Percentage of Shortage rate ginned shown shown yield p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d more on account of depreciation, inter-investment etc. The ITO was not satisfied with the explanation offered by the assessee-appellant in the absence of satisfactory evidence and, as such, he took the charges per bale at Rs. 17.80 and excess of Rs. 10 per bale was added back. He, therefore, concluded that @ Rs. 10 on total bales of 6215 (on account of his own ginning and pressing) would come to Rs. 62,150 observing therein that he did not make the extra addition on that account as it would be covered by the addition of Rs. 62,150, which was made on account of low yield. Thus, the ITO made an addition of Rs. 62,150 for both low yield, high shortage and high expenses and thereby treated this amount as the assessee's concealed income. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant had not undertaken the operation of delinting of cotton seeds. (iii) The quality of the appellant's kapas was inferior. Keeping in view all the aforesaid facts and circumstances, I am of the opinion that in the present case, the adoption of a yield of 35.5 per cent the shortage works out to 104 qtls. Which is exactly equal to the addition made by the ITO. Under the circumstances, the addition made by the ITO is upheld, although the figure of yield adopted by him at 36.14 per cent is reduced to 35.5 per cent." Being aggrieved and dis-satisfied, the assessee-appellant has preferred this appeal. 5. Shri Anand Kumar Mangal, the learned counsel for the assessee-appellant, contended that the AAC had erred in law and on fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Dal Mills, Adampur is 34.5 per cent while of M/s Rikhi Ram Ram Gopal, Narwana and M/s Ganga Dutta Bhim Sain Cotton Ginning Pressing Factory, Adampur Mandi the yields respectively are at 35.1 per cent and 35.25 per cent. The AAC also found that there were, however, certain reasons available which were summarised in his order and these have already been reproduced above. Thus it is clear from the above facts that the cases relied upon and the reasons taken into account by the AAC cannot be said to be favourable to the conclusion arrived at by him rather these justify the yield shown by the assessee-appellant at 35.145 per cent because the cases referred to above clearly show that the yield shown by the assessee-appellant under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation of India Ltd., dt. 8th June, 1974 from M/s Harji Ram Balwant Singh, Abohar and dt. 5th May, 1973 from Cotton Corporation of India Ltd. Further more, the authorities below have not pointed out any infirmity in the appellant's accounts at all. The assessee appellant has offered the explanation which shows that it got the kapas ginned through other factories on payment of wages for the same the major portion of it was saw-ginned. It is an admitted fact that saw-ginning always results in low yield than that of roller-ginning. Therefore, we hold that the explanation offered by the assessee-appellant for low yield and shortage was justified and there is no material brought on the record by the Revenue on the basis of which we can c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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