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Issues Involved:
1. Deletion of addition on account of concealed profits of unrecorded sales. 2. Addition in respect of alleged sales at lower than market rate to sister concerns. 3. Disallowance of unpaid sales-tax liability under s. 43B. 4. Charging of interest under s. 215 of the Act. 5. Validity of the order passed by the Assessing Officer with the previous approval of the Dy. CIT. Summary: Issue 1: Deletion of Addition on Account of Concealed Profits of Unrecorded Sales The Revenue's grievance was against the deletion of an addition of Rs. 7,63,619 made on account of concealed profits of unrecorded sales. The CIT(A) deleted the addition on the grounds that the Asstt. CIT's analysis of production, yield, and electricity consumption merely created suspicion without substantiating the inference that the assessee sold oil outside the books to M/s Hynoup Food & Oil Industries Pvt. Ltd. The CIT(A) noted that variations in yield and electricity consumption were due to factors like seed quality and machinery efficiency. The CIT(A) also held that the director's admission during the search was binding only on him and not on the assessee, citing the Supreme Court judgment in Kishinchand Chellaram vs. CIT. The Tribunal upheld the CIT(A)'s findings, noting the lack of corroborative evidence from the Assessing Officer and dismissed the Revenue's appeal. Issue 2: Addition in Respect of Alleged Sales at Lower than Market Rate to Sister Concerns The Revenue contested the deletion of an addition of Rs. 2,21,297 for alleged sales at lower than market rates to sister concerns. The CIT(A) deleted the addition following his orders for previous assessment years, which were upheld by the Tribunal. The Tribunal, respecting its earlier order, upheld the CIT(A)'s findings and dismissed this ground. Issue 3: Disallowance of Unpaid Sales-Tax Liability Under s. 43B The CIT(A) deleted the disallowance of Rs. 1,530 representing unpaid sales-tax liability of the last quarter, noting that the amount was paid within time in the next year before the due date for filing the return u/s 139(1). The Tribunal found the CIT(A)'s decision consistent with the Gujarat High Court judgment in CIT vs. Chandulal Venichand and upheld the deletion. Issue 4: Charging of Interest Under s. 215 of the Act The Revenue's grievance regarding the CIT(A)'s direction not to charge interest under s. 215 was deemed consequential and did not survive after considering the relief given by the CIT(A). The Tribunal upheld the CIT(A)'s directions, referencing the Gujarat High Court judgment in CIT vs. Bharat Machinery & Hardware Mart. Issue 5: Validity of the Order Passed by the Assessing Officer The assessee's cross-objection challenged the validity of the Assessing Officer's order, arguing it was passed with the previous approval of the Dy. CIT without giving the assessee a specific opportunity to be heard. However, in light of the Tribunal's findings on the Revenue's appeal, the cross-objection was deemed infructuous and dismissed. Conclusion: The Tribunal dismissed both the Revenue's appeal and the assessee's cross-objection, upholding the CIT(A)'s deletions and directions.
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