TMI Blog1994 (5) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... )(b) of the IT Act. In this case assessment was originally completed under s. 143(1). However, subsequently it was reopened under s. 143(2)(b) after obtaining approval of the IAC. The assessee has challenged the reopening. However, at the time of arguments, no serious submissions were made on this ground. 4. We have gone through the order of the CIT(A) and we find that the view taken by the CIT(A) is correct. Therefore, this ground is rejected. 5. The next grievance in assessee's appeal is that the CIT(A) erred in confirming the sale at Rs. 8,80,000 against the shown sales of Rs. 8,41,457 and applying the rate of gross profit of 12% as against 10.6% disclosed by the assessee. While scrutinising the record of the assessee, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 7. The learned counsel for the assessee brought to our notice the comparative statement of sales, G.P. rate applied in previous years given at page 1 of the paper book and also pointed out that plywood and sun-mica work was started in the asst. yr. 1984-85. Before that the assessee was not engaged in this kind of purchase and sale of goods. Therefore, the past history of the G.P. rate cannot be applied to this assessment year. It was also submitted that enhancement of sale is uncalled for specially when the assessee had shown better sales in subsequent assessment year as well as the profit. As against this, the learned Departmental Representative supported the action of the CIT(A). 8. We have considered the rival submissions. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned Departmental Representative supported the action of the Revenue authorities. 12. We have considered the rival submissions and have gone through the order of the CIT(A) on this point. We find that the assessee had not been maintaining any register for sale of waste material such as wood chips and saw dust which in the normal course of business would yield some income to the assessee. That is how the ST authorities in previous year had estimated income from sale of waste material. Keeping in view this fact, the view taken by the CIT(A) is correct. No interference is called for. This ground is hereby rejected. 13. The next grievance in assessee's appeal is that the CIT(A) erred in confirming the addition of Rs. 20,000 on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Radha Devi was not challenged. The amount was paid out of bank deposit which is shown in the accounts of the assessee. Therefore, genuineness of the cash credit was established. As against this, the learned Departmental Representative relied on the order of the CIT(A). 17. We have considered the rival submissions and have gone through the order of the CIT(A) on this point. We find that there were several contradictions and infirmities in the statement of Shri Jagdish Kumar besides other circumstances pointed out by him. We find that the view taken by the CIT(A) confirming the addition is correct and we do not find any material to take a different view in the matter. This ground is also rejected. Revenue's appeal 18. In Revenue's app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree with the view taken by the CIT(A). Therefore, this ground has no merit. 20. The next grievance in Revenue appeal relates to deletion of addition of Rs. 20,090 including interest made by the Assessing Officer in respect of unexplained cash credit in the account of Smt. Meenu Chawla. The assessee had shown a cash credit of Rs. 20,000 in the account of Smt. Meenu Chawla which was supported by the affidavit and the amount was shown to have been received by two account payee cheques on3rd Feb., 1986and4th Feb., 1986drawn on Oriental Bank of Commerce, Sonepat. However, the ITO held that the transaction was not genuine. Therefore, he made an addition in the hands of the assessee as income from undisclosed sources. Similarly the interest cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of Meenu Chawla, Shri Harbans Lal was produced for examination before the ITO. He admitted having made the gift of Rs. 5,000 to Smt. Meenu Chawla and further deposed that he was having twenty acres of agricultural land and the total agricultural holdings of his father and his other three brothers were more than 100 acres. The ITO has held the deposit of Rs. 20,000 in the account of Smt. Meenu Chawla as unexplained on the ground that the gifts of Rs. 5,000 each were not made on any ceremonial occasion, that the gifts were made only by two maternal uncles of Mrs. Meenu Chawla and not by all the four maternal uncles, that in the marriage of Smt. Meenu Chawla, each of her four maternal uncles, had only contributed a sum of Rs. 500 and that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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