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TMI Blog1995 (4) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer did not dispute the yield but was of the opinion that the consumption of husk for driage purposes was excessive. According to him, 10% of the husk yield was sufficient for driage purposes. Thus reducing a quantity of 2,776 qtls. from the quantity of 23,758 qtls. shown as consumed, the Assessing Officer found the quantity of 20,981 qtls. of husk as excessive which according to him was sold outside the books of account. Applying an average rate of 15 per qtl., the Assessing Officer worked out the excess consumption at Rs. 3,41,715. Thus the Assessing Officer made an addition of Rs. 3,41,715 to the book results of the assessee. The learned CIT(A) deleted the addition. The Revenue is in appeal against this addition for asst. yr. 1986 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause the sales were mostly cash sales. The Assessing Officer adopted the sale rate of Rs. 20 per qtl. thereby working out the value of husk sold at Rs. 62,000. After deducting the value of husk shown in the books of account at Rs. 21,300, the Assessing Officer made an addition of Rs. 40,700 which was reduced to Rs. 25,200 by the learned CIT(A). On this ground, the assessee is in cross-objection. 7. The learned Departmental Representative relied on the orders of the Assessing Officer and submitted that in the absence of day-to-day consumption register and in view of the fact that the consumption of husk was rather excessive for driage purposes, the addition had been rightly made by the Assessing Officer. 8. Shri H.L. Singla, the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence had been adduced by the Assessing Officer. 9. Relying on the Punjab Haryana High Court decision in the case of Jhandumal Tarachand Rice Mills vs. CIT (1969) 73 ITR 192 (P H), the learned counsel for the assessee submitted that the method of accounting adopted by the assessee having been accepted by the Department in the previous years, there was no sufficient ground for making a trading addition in the years under consideration. 10. The learned counsel for the assessee also submitted that though the Assessing Officer had made reference to some comparable cases particularly in the assessment order for asst. yr. 1987-88 but no data regarding those cases was ever made available to the assessee in the absence of which the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) was justified in deleting the additions. 13. As regards the part confirmation of additions by applying a higher sale rate on sales of husk, it was submitted that this was also based on suspicions and surmises. Since the entire sales of the assessee had been accepted as correct by the Sales-tax department and there was no positive evidence that the assessee did sell the husk at a higher rate, the rate shown by the assessee should be accepted particularly when the books of account had not been rejected, so ran the submission. 14. After carefully considering the submissions of the learned representatives of both the parties, we find that no specific defects in the account books have been detected by the Assessing Officer. As per detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel for the assessee is also relevant and strengthens the case of the assessee. In the absence of full details, it is not possible to believe whether cases considered as comparable by the Assessing Officer were really comparable. Taking all these factors into consideration, we are of the considered opinion that the learned CIT(A) was justified in deleting the addition of Rs. 3,41,715 for asst. yr. 1986-87 and of Rs. 3,23,240 for asst. yr. 1987-88. We hold accordingly. 15. As regards the assessee's cross-objections, we find that the sales of the assessee have been accepted. The sale rate in the earlier years was also accepted which was still lower than what has been shown by the assessee in the two years under consideration. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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