9911796707
TMI Blog1978 (6) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the bills of the ginning factory showing the cotton received by them from the assessee and the resultant lint and cotton seeds delivered to the assessee. That this is so is not disputed by the ITO. But the ITO did not accept the explanation of the assessee who had shown a yield of 36.1 per cent in the earlier year. According to the ITO the yield of cotton should have been 36 per cent and on this basis he worked out the short fall at 40 qtls., the value of which was worked out by him at Rs. 29,600 and this amount was added to the book results. 2. The assessee appealed to the AAC. Before the AAC the assessee contended that in view of the fact that the ginning was carried out through outside parties and since the quantities were supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, held that the yield shown in this case of 34.2 per cent on cotton account could not be said to be low. 3. Apart from this, there was a cotton business done in Khandwa Harda where the yield shown was 34.7 per cent and the ITO took it at 36 per cent with the result that he made an addition of Rs. 27,213. For the reasons given by him with regard to the cotton purchased and ginned locally the AAC held that the addition in respect of Khandwa Harda Cotton also could not be sustained. The total addition made by the ITO of Rs. 56,813 was thus deleted by this the AAC. The Department is aggrieved by order and has come in second appeal before us. 4. The learned Departmental representative relied on the fact that in another case in ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relied upon by the Departmental representative in ITA No. 330/Bang/1975-76 the assessee had been shown a comparable case and he tried to distinguish it first but failed to do so. But the ITO has not done anything of that nature as is misused. On the other hand, he has failed to meet the evidence produced by the assessee before the AAC which was duly put to him. The Departmental representative also relied on a decision of the Tribunal in ITA No. 1054/Bang/1976-77 dt. 12th May, 1978. That case is clearly distinguishable. In that case the assessee had shown less than 30 per cent and reliance was placed on a comparable case of 36 per cent yield. The assessee did not apparently dispute that 36 per cent was reasonable and actually tried to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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