9911796707
TMI Blog1992 (5) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... dings before us, Sh. Subhash Aggarwal, Id. representative of the assessee, submitted that he did not want to press any other ground, except ground No. 1 relating to the addition of Rs. 1, 11,000. Accordingly, ground Nos. 2, 3 and 4 are dismissed as having not been pressed. 3. The only ground argued by Sh. Aggarwal relates to the addition of Rs. 1, 11,000 made by the Assessing Officer as income from undisclosed sources. The addition has been made by the Assessing Officer on account of various defects in the accounts detected by him, as mentioned in paras 3 to 9 of the assessment order. The Assessing Officer during the course of assessment proceedings found that the g.p. declared this year was very low in comparison to the g.p. of last year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the mode of transport of these four machineries sold by the assessee and accordingly the Assessing Officer concluded that these sales were fictitious and the assessee has introduced his undisclosed income amounting to Rs. 1,11,000 in the garb of cash sales, which was necessary to meet the urgent need of cash for payment of unpaid wages and other dues which the assessee was obliged to make to the Punjab National Bank as well as other related business expenses. 5. The assessee objected to the above two additions in proceedings under section 144B before the IAC (Central) and pleaded that in case the addition of Rs. 1,11,000 was to be sustained on the ground that sales of Rs. 1,11,000 included in the sale account were not admitted by the De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessity of cash for making urgent payments to labour etc. It was argued by Sh. Bhatia that the sale of machineries as depicted in para 9 of the assessment order as well as in para 3.3 of the impugned order, will be a permanent asset in the hands of the buyer, who will require it for use in their manufacturing process and the buyer has to identify the machineries with itself for claiming the benefits like depreciation/investment allowance from the Department. It was pleaded that the amount involved in these four sales was quite substantial and it would not have been difficult for the assessee to obtain the names of the buyer/s and furnish it to the Assessing Officer. Accordingly, it was pleaded that the alleged cash sales of Rs. 1,11,000 we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has been produced. On these grounds, the ITO has held that the assessee has introduced a sum of Rs. 1,11,000 in his books in the garb of sale and has utilised this cash amount also. The assessee has not added anything to the evidence at the time of argument before me during the proceedings under section 144B and, therefore, the ITO's action is approved. The assessee has, however, taken the alternative plea that, if the sum of Rs. 1,11,000 is not a sale, then the g.p. rate on the reduced sales will become normal and should be accepted in view of the past history of the case where the g.p. rate of 20 to 26 per cent was being declared. This contention of the assessee is acceptable and the ITO shall make the g.p. rate addition, keeping in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 41(2) and the capital gains." This aspect of the case has been discussed by the Assessing Officer in para 10 of the assessment order. The facts, briefly, are that the assessee sold a part of land measuring 9230 sq. yd. and factory building thereon for a consideration of Rs. 10,05,000 vide registered sale deed No. 5015 dated 5-2-1980 to M/s Oswal Woollen Mills. Acquisition proceedings were started by the IAC against the purchaser and the valuation of this property was referred to the Government valuer, who estimated the fair market value of the property at Rs. 18,31,000 on the date of sale. Accordingly the competent authority - IAC (Acq.) passed order for acquiring the property. The vendee went in appeal against this order b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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