9911796707
TMI Blog1991 (1) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Rs. 94,530 due to alleged unaccounted stock found as a result of survey on 17th Sept., 1982. As per the survey team, the excess stock found was as under: Kind of Grains Excess stock found (in qtls.) Value (in Rs.) (1) Wheat 5 1,250 (2) Raida 200 82,000 (3) Arandi 21 4,620 (4) Tara Mira 17 5,100 (5) Alsi 2 900 (6) Moong 2 660 Total . 94,530 The excess stock had been calculated by the survey party as also by the ITO in the assessment order on the presumption that each of the bags of different grains contained 100 kgs. "Bharti"(local standardised actual weight of the contents of the bag). The case of the assessee was that the "Bharti" had been wrongly taken as 100 kgs. and that it differed commodity to commodity. It was said that for wheat "Bharti" was about 90 kgs and for Raida 85 kgs. It was also said that the purchases and sale were made on the basis of the actual weight of each bag. It was further stated that so far as Raida was concerned 169 bags had been sold to one M/s Narendra Kumar & Co. on 11th Aug., 1982 vide Bill No. 4316 and that even after the sale, the sold bags were lying in the assessee's godown and had not been lifted till 20th Sept., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was that the Bharti was 85 kgs. and the same had been taken by the learned Commissioner(A). So far as the wheat is concerned, we may point out that the details of bills at pages 15 to 17, to which our attention was drawn on behalf of the assessee, also support the Bharti taken by the learned Commissioner(A). So far as Bhartis for other grains taken by the Commissioner(A) are concerned, we do not find them to be unreasonable. So far as the shortage in Raida is concerned, the finding of the learned Commissioner(A) that 169 bags of Raida has been sold to M/s Narendra Kumar & Co. vide bill dt. 11th Aug., 1982 and that it had been lifted only on 20th Sept., 1982 appears to be correct. Firstly, the assessee had produced certain sale bills according to which Raida sold to Devichand Yantimal on 26th Feb., 1980 had been lifted on 27th Feb., 1980 and Chana sold to Asuji Bharat Kumar on 23rd March, 1980 had been lifted on 31st March, 1980. Therefore, it was established in the assessee's way of business this was not abnormal. Further the assessee had filed photostat copy of the bill and Form Nos. ST-17. It had also filed the photostat copy of the cash book entry and ledger entry from the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween the statement of Shri Nainaram before the Inspector and before the ITO. He preferred to follow the statement given before the Inspector. 7. The rival submissions have been considered on this point. Shri Nainaram Bhatt is an agriculturist having 100 bighas of land and having 10 buffaloes and 10 cows. The Suapanch of Gram Panchayat Bimani had given a certificate on 16th Sept., 1985 that he had 42 animals including 14 cows, 6 buffaloes and 22 oxen. The assessee had filed a receipt dt. 8th Oct., 1980 in the name of Nainaram for Rs. 1,120 from the Commercial Taxes Department. The account of Shri Naina Ram as also the copy of his bank account were filed. The assessee also filed the receipt dt. 17th Sept., 1982 given by Shri Nainaram regarding repayment of the amount of Rs. 40,000. In the affidavit Shri Nainaram testified to this receipt. The statement of Sh. Nainaram before the ITO taken on 19th March, 1983 corroborates the assessee's case. No doubt there are some apparent contradictions in the statement which he gave on 7th Oct., 1982 before the Inspector, but the learned counsel for the assessee is right in pointing out that the IT Inspector was not authorised to administer oat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal as 2,597. We find from the order of the ITO that the amount was not seized and that since the assessee was not able to give satisfactory explanation for the same, it was added. The assessment order further records the fact that the amount of cash found was Rs. 4,445 out of which Rs. 3,398 was cash balance as per the cash book. That is how the amount of Rs. 1047 was held to be excessive. 12. The learned Commissioner(A) had confirmed the addition in regard to this amount on the same basis. 13. After hearing the learned representatives on both the sides and in view of the complete absence of explanation on behalf of the assessee, the addition of the amount of Rs. 1,047 has to be upheld. We make it clear that this excess amount is Rs. 1,047 and not Rs. 2,597 as mentioned in the assessee's grounds of appeal. 14. The next ground relates to the addition on account of alleged unexplained investment in the pawning business said to have been made by the assessee firm. On this point the assessee as well as the Department both are in appeal. The ITO had found that during the course of Survey, gold ornaments weighing 12 tolas and bearing slips in the names of various parties were f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Bhanwar Singh's statement also appears to have taken, though its copy has not been placed on the paper book. Shri Narain Singh has stated that his daughter came to the village to stay for about a month and it were her gold ornaments weighing 8 tolas which have been kept with the assessee for safe custody. The IT authorities appeared to have unduly influenced by the fact that ornaments belonging to other members of the family of these two persons had not been similarly entrusted to the assessee for safe custody. We, therefore, see no justification on facts for making any addition. The same is accordingly deleted. 17. The next ground relates to the disallowance of Rs. 5,000 out of various expenses claimed by the assessee amounting to Rs. 36,393. Their details are the following: . Rs. Motor Cycle Expenses 2,297 Telephone Expenses 2,373 Shop Expenses 31,723 The ITO found that the shop expenses were not completely vouched and that they also included personal expenses of the partners on tea, cold drinks, etc. The motorcycle expenses were also having personal element and full details were not there and the same was the position in regard to telephone expenses. He, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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