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2011 (4) TMI 859 - HC - Income TaxUnaccounted Cash credit - additions confirmed - Held that:- The amount of Rs.30,000/- had been received through encashment of FDRs in the name of Shri Harbans Lal and Rs.15,000/- has been separately received by draft - Calcutta High Court in the case of Shankar Industries v. CIT [1978 (3) TMI 91 - CALCUTTA High Court], mere identity of the creditor is not enough, capacity of the creditor and genuineness of the transaction have also to be proved - Accordingly decided against the assessee Disallowance of bardana loss at Rs.1,15,490/- Held that:- As this bardana was not used in closing stock of rice superfine because the stock was damaged and remained in stock out of old husking and it was packed in used bags - As regards collusive transaction with M/s Prahlad Bhagat & Co. for purchase of rice @ Rs.900/- and sale @ Rs.750/-, the reasons for such transactions, the assessee explained the reasons for the same that good quality rice had been purchased from them and poor quality supplied - The only addition that can be sustained in this regard was with regard to supply made by M/s Prahlad Bhagat & Co. at Rs.771/- for which bags had been charged at Rs.2/- which is to be taken as loss of M/s Prahlad Bhagat & Co. and not that of the assessee - Decided against the assessee
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