TMI Blog1993 (8) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of under-statement of stock of rice basmati. 3. While allowing relief at Sr. No. 2 above, the learned CIT(A) has failed to appreciate that the assessee has declared to the bank authorities, on solemn affirmation, 1856 qtls. of rice basmati as against 862 qtls. shown in the books of account. 4. It is prayed that the order of the CIT(A) be vacated and that of the ITO be restored." 2. Regarding ground of appeal No. 1, it is seen that the learned CIT(A) has deleted the addition for the reasons given in detail in paras 2 to 4. A perusal of the order passed by the learned CIT(A) indicates that there is some confusion regard to the date of the cheque amounting to Rs. 2,30,000 as to whether the date was 30th March, 1984 or 30th April, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue. 3. Coming to ground of appeal No. 2 and 3 which relates to the deletion of addition of Rs. 5,44,000 made by the Assessing Officer as unexplained investment in the stock of Rice Basmati weighing 1088 qtls., Shri Raj Kumar, learned Departmental Representative, submitted that the CIT(A) was not justified in deleting the addition as, as per the register maintained by the assessee, the stock of Basmati Rice with the assessee was only 862 qtls. whereas as per the hypothecation statement of stock furnished to the Central Bank of India for obtaining overdraft facility, the quantity of Rice Basmati shown by the assessee was 1950 qtls. and since, the excess stock shown to the bank weighing 1088 qtls. was not properly explained the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Civil Supplies Deptt. of Punjab Govt. and fortinightly statements of production are sent to the Directorate. It was submitted that 90% of the yield is taken away by the Distt. Food Civil Supplies Controller as levy and the same is worked out on the basis of registers maintained by the assessee and as such there is no scope for suppression of Rice Basmati. It was submitted that the Assessing Officer has not pointed out any discrepancy in the stock register and the statements furnished by the assessee to the DFSC. He accordingly submitted that the change in description of Rice Parmal, to Rice Basmati for obtaining higher overdraft facilities was simply an attempt by the assessee to obtain higher overdraft for the purpose of business and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances, there is no scope for any concealment at all. The ITO has not at all pointed out any discrepency in the stock registers and the statements furnished to the DFSC. Further market fee is also charged on the basis of registers and the statements are sent to the market area committee on that basis. If there had been any discrepency in the stock, the licence of the assessee would have been cancelled. The Amritsar Tribunal in the case of ITO vs. R.K. Rice Oil Mills, in ITA No. 559/Asr/1986 for the asst. yr. 1983-84 deleted such an addition on the basis of Madras High Court's judgment in the case of CIT vs. Ramakrishan Mills (Comibatore) Ltd. (1974) 93 ITR 49 (Mad) in which it was held that where no discrepancy had been pointed out in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
