9911796707
TMI Blog1994 (11) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... The only effective ground is against the allowance of relief of Rs. 2,34,887 on account of unexplained investment. Original return of income in this case was filed on 29th Jan., 1988, declaring net income at Rs. 18,560. The Assessing Officer completed the assessment under s. 143(1) on 22nd March, 1988. Later on, the Assessing Officer made certain enquiries and found that the assessee had purchased and sold sarson and toria outside the books of account. Enquiries were made from three parties namely, M/s Parshotam Dass Balwinder Kumar, M/s Ramesh Oil Mills and M/s Suraj Bhan Sham Lal. All the three parties were from Rajasthan. It was noted by the Assessing Officer after obtaining copies of the assessee's account in the books of the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t detail and came to the conclusion that so far as the transactions with M/s Suraj Bhan Sham Lal were concerned, the purchases were duly reflected in the account books of the firm and thus could not be termed as transactions outside the books of account. Thus according to him, the controversy was limited to the unexplained purchases of Rs. 1,67,475 (Rs. 2,34,887 minus Rs. 67,412). The learned CIT(A), however, noticed that as per copies of account of the assessee appearing in the books of the Rajasthan party, the purchases had been made earlier and the payments by way of drafts had been made later. From the surrounding circumstances of the case, he accepted the version of the assessee that the sales would have taken place and out of the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account of the assessee. It was also submitted that the statement of Shri Subhash Chand could not be accepted in part and rejected in part. Referring to the statement of Shri Subhash Chand which forms annexure `A' to the assessment order, it was submitted that the sales to the farmers had been admitted by Shri Subhash Chand partner and the remittances were sent out of those sale proceeds. The learned counsel for the assessee drew our attention to the peak statement prepared by the assessee, a copy of which is available at page 14 of the assessee's compilation. It was submitted that according to the peak statement, the maximum credit balance came to Rs. 11,363 on 22nd Sept., 1986 which was offered for assessment by the assessee alon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds the other purchases made from other two parties of Rajasthan, we hold that the statement of Sh. Subhash Chand, partner, cannot be accepted in part and rejected in part. The stand of the assessee has been that the remittance in respect of the purchases made were sent to the Rajasthan parties after realising the sale proceeds. Since the transactions are not recorded in the books of account, one has to go by the surrounding circumstances and the circumstantial evidence. As per copies of account of the assessee appearing in the books of the Rajasthan parties, the purchases were made by the assessee on earlier dates. It is very likely and plausible that after the purchases the assessee would have sold sarson and toria etc. to some parties an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r transactions as surrendered by the assessee for that year at Rs. 45,960. Thus giving a total credit of Rs. 2,80,847, the Assessing Officer made an addition of Rs. 50,170 on account of unaccounted for investment. The figure arrived at Rs. 50,170 appears to be a mistake because the correct figure works out to Rs. 59,170 but since that matter is not before us, we need not deal with the same here. 10. The Assessing Officer accordingly added a sum of Rs. 50,170 in addition to the profit of Rs. 45,000 surrendered by the assessee. 11. The learned CIT(A) following his order for the asst. yr. 1987-88, deleted the entire addition of Rs. 50,170. While analysing the account of M/s Ramesh Oil Mills, it was noted that there were two items of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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