9911796707
TMI Blog1983 (3) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the bank as on 31st March, 1975, the last date of accounting year relevant for the asst. yr. 1975-76, which is under consideration, a bank certificate was filed by the assessee showing that 3338 Qtl. Cotton seed of the value of Rs. 2,27,954 was pledged with the bank. When the said quantity of cotton seed was not available as per closing stock indicated by the assessee, the assessee was required to explain the source of the same and in response to the said query made by the ITO, the assessee submitted that 1500 Qtl of seed belonged to one M/s Sukhdev Murari Lal, Khanna, and 1900 Qtl of cotton seed belonged to M/s Ashoka Cotton Co., Khanna, one of the sister concerns of the assessee. the ITO looking to the certificate furnished by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce and in a case of this type totality of circumstances has got to be taken into consideration and only combined effect of all those circumstances could be determinative of the question as to whether these stocks belonged to Ashoka Cotton Co. and Sukhdev Murarilal and, therefore, deleted the said amount of Rs. 4,06,680. 4. It is this action of the CIT (A) which is disputed by the revenue before us. The ld. Departmental representative Mr. R.K. Bali submitted that once the assessee had made a statement before the bank in the form of pledge certificate that the goods in question against which the loans were raised belonged to the assessee, it should not lie in its mouth now to say that the very same goods belonged to some one else. It case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. departmental representative before us is the certificate furnished by the assessee to the bank which find place in para 11 of the CIT(A)'s order wherein the assessee made the following declaration: ".......We hereby certify that the goods mentioned above is our own property and no one else excepting the bank has any lien over the same." It is this statement which, according to the revenue, should not be dislodged subsequently by any evidence whatsoever. In that regard, the ld. Departmental representative relied on the case of Coimbatore Spinning Weaving Co. Ltd., headnote of which reads as under: "The alleged practice said to be followed by business house of declaring larger stocks to the banks for the purpose of getting hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s observed that a heavy burden lies on the assessee to prove that the books of account alone give a correct picture and the sworn statements given to the blanks were motivated. In the instant case, even the heavy burden whatsoever imposed on the assessee stands discharged, which shall be apparent from the following facts: (a)The assessee does not deal in cotton seeds. Ashoka Cotton Co, is an allied concern and so is M/s Amar Ginning and Oil Mills through whom the goods belonging to Sukhdev Murarilal were pledged. (b) Both the parties not only confirmed but gave their respective affidavits with their permanent account numbers. The observation of the IAC in the course of giving directions that where was the necessity of affidavits when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any substandard morality on the part of the assessee can be assigned, it can be only in respect of obtaining loans. We endorse every word of the finding given by the CIT(A) in paras 12 to 15 of his order on this issue. The contentions of the assessee are also supported by our earlier decision in the case of M/s Amar Ginning an Oil Mills to the limited extent that this is a matter of fact and on the basis of fact, as in the case of M/s Amar Ginning and Oil Mills, the assessee here has also succeeded to prove that the goods against pledge of which overdraft facilities were enjoyed and overdraft was obtained by the assessee, actually belonged to M/s Ashoka Cotton Co. and M/s Sukhdev Murarilal. The CIT(A), as per para 14(c) of his order, found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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