TMI Blog1985 (5) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... an addition of Rs. 5,000 as income from 'other sources' being unrecorded cash sales ? 2. Whether, on the facts and in the circumstances of the case, there was legal and admissible evidence to support the finding of the Income-tax Appellate Tribunal contained in its order dated December, 1976, upholding the addition of Rs. 5,000 as income from undisclosed sources ? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified to sustain an addition of Rs. 27,000 as income from undisclosed sources ? 4. Whether the order of the Income-tax Appellate Tribunal is not vitiated on account of non-consideration of the material evidence and on consideration of the totally irrelevant an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank 84,800 (c) The value of the difference in the stock of G.C. sheets as recorded in the books of the assessee and are found recorded in the books of the bank 27,000 3. The addition in the truck A/c 3,888 4. Addition due to sales tax penalty 2,388. " The assessee went in appeal and the Appellate. Assistant Commissioner gave relief to the assessee amounting in all to Rs. 1,14,212. He, however, sustained the following additions : Value Rs. " 1. Trading account additions 38,558 2. Addition in the truck A/c 3,388 3. Addition due to unrecorded cash (sales) 5,000 4. Difference in the value of the stock of G.C. sheets as above 27,000 5. Disallowance on account of sales tax penalty 2,367. " Dissatisfied, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he trader was subjected to a survey on September 25, 1971, and, at that time, an account was found noted on certain loose papers. Therefore, the trader's records were subjected to scrutiny on various dates and his statement was recorded... An examination of the trader's loose papers taken into possession revealed that the opening and closing balances of cash on several days, as recorded on those loose sheets, did not tally with the corresponding balance recorded in the cash book. When the trader was asked to explain the cause for this discrepancy, he replied that this discrepancy has been there since last year itself which was on account of the differences in sales of sugar and iron. But the sum in question was different in the last year's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king note of it and correspondingly increasing the total income of the assessee. It is true that the original papers were not before the income-tax authorities; in fact, nobody knows where they are. But it does not follow from this that they were never discovered and what is stated by the sales tax authorities is not correct. In the absence of the original record, the authorities below had no option but to take note of the finding given by the Commercial Taxes Officer in the normal discharge of his duties and which the assessee chose for whatever reason not to challenge. We, therefore, confirm the addition sustained by the learned Appellate Assistant Commissioner on this point. " The addition of Rs. 5,000 as unrecorded cash (sales) is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C. sheets, one bundle weighing one quintal and the stock pledged with the bank was 208 bundles of G. C. sheets. The certificate given by M/s. Iron Steel Association, Banswara, was also considered. The books of account of M/s. Iron Steel Association, Banswara, were not produced before the Income-tax Officer and ultimately it was submitted that the said books of account had been destroyed by a fire accident. The affidavit dated March 15, 1973, of Chandmal was taken into consideration. The affidavit of Shri Prakash Chandra, partner of M/s. Iron and Steel Association, was also considered. The Tribunal took into consideration the material on record, the circumstances emerging therefrom and also the reasons given by the Appellate Assistant C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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