TMI Blog1995 (4) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... nd then the issue should have been decided rather than summarily dismissing the ground of appeal. 3. That the learned CIT(A) has erred both on facts and on law in setting aside the matter regarding the addition in respect of cash credits as made by the ITO to the file of ITO. 4. That the learned CIT(A) should have on the basis of material on record with the ITO decided the issue in favour of the appellant. 5. That the appellant craves leave to add or to amend any of the grounds of appeal before the appeal is finally heard or disposed of." At the time of hearing, Shri Sudhir Sehgal, Advocate, learned representative of the assessee, has submitted that he did not want to press ground of appeal Nos. 3, 4 and 5 which are accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00. In the assessment year under consideration, the assessee purchased 68531 pieces at a cost of Rs. 3,40,889. It has sold 37997 pieces at a price of Rs. 258438.50 and it was having 30614 pieces in the closing stock valued at Rs. 1,99,849 the loss of Rs. 15,000 has been estimated by the assessee to be on account of 1520 bags, which has been written off. On a specific query from the Bench, Sh. Sudhir Sehgal, Adv. could not give the basis for arriving at the figure of 1520 bags, which was written off and whose valuation was estimated by the assessee at Rs. 15,000 for the purpose of claiming loss in the Bardana Account. He only submitted that on physical verification at the end of the year the bags were found to be 30614 and as such the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chhilka and phak. (iii) Cash sales of chhilka were not verifiable. (iv) The yield of the assessee was low in comparison to the yield of PCI. (c) It is prayed that the order of the learned CIT(A) be set aside and that of the ITO restored. (d) The appellants requested for leave to add or amend the grounds of appeal before the appeal is heard and disposed of." 8. The grounds of C.O. No. 120(Asr)/1989 taken by the assessee are as under: "1. The learned CIT(A) has rightly deleted the addition of Rs. 1,83,042 by holding that the provisions of s. 145(1) are not applicable to the facts and circumstances of the case. 2. That the learned CIT(A) has considered in detail each and every finding of the Assessing Officer, and after co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ield of rice as per discussion in para 7 of the assessment order and further credit of Rs. 10,724 on account of lesser yield of rice bran and rice phak shelled as per the reasoning given by in para 8 of the impugned order. 11. During the course of assessment proceedings, the AO found that in respect of PR-106, the assessee has shown a yield of 64.50% for the accounting period ending 31st March, 1988. For IR-8, the yield was shown at 68%. The AO also found that with regard to the chika, the assessee has valued the closing stock at Rs. 19.72 per quintal and the sales have been effected at the rates varying from Rs. 12 to Rs. 19 per quintal. The AO also found that all the sales of chilka were made on cash basis and as such he held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported the action of the CIT(A). 14. We have heard the rival submissions and have gone through the orders passed by the AO as well as the CIT(A). We have also perused the photo copies of production register, which were maintained by the assessee during the normal course of business and which were furnished to be in the form of paper book and we have also seen those registers which are duly signed by the officials of the Food Civil Supplies Department and as such the observations of the AO that the assessee was not maintaining any production record of paddy husked and rice produced is factually found to be incorrect. Shri Sudhir Sehgal, Advocate, the learned representative of the assessee, has submitted a copy of the Tribunal's order in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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