TMI Blog1984 (2) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... on of this amount of Rs. 7,807 to its income. The ITO further added an amount of Rs. 9,450 to the total income of the assessee firm on account of unexplained cash credit in the name of four minors. 3. The assessee firm being aggrieved by the order of the ITO went in appeal before the AAC because the firm showed its income at Rs. 55,550 for asst. yr. 1980-81 whereas the ITO has computed the total income at Rs. 82,000. The AAC upheld the addition of Rs. 2,000 only from the total addition of Rs. 7,807 on account of suppressed sales of groundnut oil and unrecorded and unexplained purchases of groundnuts. The AAC had deleted the entire addition of Rs. 9,450 made on account of unexplained cash credits in the names of four minors. While doing so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 470 were not recorded in the books of accounts by the assessee. This gives an idea that the assessee firm did not record certain sales of groundnut oil and purchases of groundnuts in the books of accounts. 6. The AAC had considered the issue of addition of profit of the sales of Rs. 7,337 and thus sustained addition of Rs. 2,000. He has also considered the expenses pertaining to the said sales and of lean margin of profit higher than the corresponding purchases. He was unable to find out how many purchases were not brought on the account books and considered that on account of this type of suppressed sales and suppressed purchases there should be some addition to the net profits. Therefore he sustained the addition of Rs. 2,000 and gav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious occasion such as birthdays, diwali and raksha bandhan etc. It was explained before the ITO by the assessee firm s representative, that these amounts because of accumulating by the mother of the minors were creditor in the account books of the firm to earn profit, etc. The ITO did not accept this explanation on the ground that the assessee firm did not produce any evidence to prove that the amounts credited in the names of our minors in the account books of the firm was proved by furnishing details of dates of giving gifts on occasions and the particulars of accumulation of amounts. However, the ITO did not doubt the credibility of minors relatives to give gifts as it was pleaded before him that the minor s relatives were giving fits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the Supreme Court in his order in para No. 2 which makes it clear that human mind may differ as to the reliability of piece of evidence but the official fact finding authority is made conclusive by law. The AAC applied this test and deleted the addition made by the ITO on account of unexplained cash credit in the names of four minors. 11. The order of the AAC is completely based on the fact finding and also supported by the decisions of the Tribunal and Supreme Court. That order does not require any interference at our hands. 12. Now the only question has remained whether the AAC has violated the provisions of s. 46A of IT Rule, 1962 because of not giving any opportunity to the ITO to rebut the certificates issued by the donors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing entertained by the Tribunal. The facts of the present case are different in that in spite of writing letter the assessee firm agitated its claim before the ITO as well as the AAC. hence it cannot be said that the assessee has agreed voluntarily to make the addition of Rs. 7,337. 14. Shri Srinivasan has further relied upon the judgment of the Madras High Court in the case of Ramanlal Kamdar vs. CIT, Madras 1977 CTR (Mad) 711 : (1976) 108 ITR 73 (Mad). In that case if the assessee would not have been aggrieved by the order of the ITO then it would not have preferred an appeal before the AAC. Agitating the addition account of suppressed sale before the ITO himself and thereafter before the AAC goes to show that the assessee had not agre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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