9911796707
TMI Blog1997 (7) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... Smt. Dhapu Bai. The assessee was required to produce these ladies. The assessee did not produce these ladies but confirmations were filed. In these confirmatory letters it was stated that there were cash balances with these ladies and out of the said cash balances, amounts were deposited with the assessee-firm. It was further noticed by the AO that there were some more cash credits during the year which were squared up and the list was obtained. The total amount which assessee took during the year was at Rs. 4,53,100 including those of 3 ladies as stated above. The assessee filed complete details and it was explained the source of investment. The AO was not satisfied with the explanation. Therefore, he required the assessee to produce some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons were required to be produced and out of 10 persons, 6 persons were produced before the AO. Regarding other creditors/depositors, it was submitted by the learned counsel that no opportunity was given to the assessee to produce them as they were not required by the AO. The assessee was ready to produce all those persons and any information which was required by the AO to file the same. 3. On the other hand, the learned Departmental Representative strongly supported the orders of the authorities below. 4. We have heard the rival submissions and considered them carefully. We find that the AO has given some reasoning while rejecting the explanations filed by the assessee in support of his contentions regarding cash creditors. We also find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not usable for the purpose of manufacturing bidi. The assessee was doing the business of tendu leaves which are used for manufacturing bidi. In support of his contention, certificate of forest department was filed before the AO. The AO noted in his order that the certificate is of much later date whereas the claim of assessee is of 31st March, 1991. The certificate which was filed by the assessee was of 21st Aug., 1993. It was also noticed by the AO that the stock register which was produced by the assessee was not indicating the shortage or damaged material. Another register was also produced in which the entry was shown. The AO was in doubt as there was difference in both the stock registers. It was also noticed by the AO that as per purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook. 7. On the other hand, the learned Departmental Representative relied upon the order of the authorities below. 8. We have considered the rival submissions carefully and perused the material on record. We have also perused the paper book pages 204A to 211 and find that these papers are in regard to inspection of stocks by the forest department of Rajasthan Government. On page 204A there is an application to the forest department for inspection of tendu leaves stock of 1991. At page 205, there is certificate of Regional Officer of the forest department that about 306 bags were found as damaged due to water and is not usable. On page 206 there is a direction from the department to inspect the godown. On pages 207 and 208 there is another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of shortage of 300 bags is hereby deleted. This ground of the assessee is allowed. 9. Ground Nos. 3.1 to 3.2 are against the enhancement of value of closing stock which was sustained by the CIT(A). The AO made an addition of Rs. 1,50,000 by stating that the assessee was not able to prove the value of closing stock. It was also stated in the order of the AO that the assessee was required to produce evidence, i.e., sale bills which he did not produce regarding the sale. Therefore, he made an addition of Rs. 1,50,000. The CIT(A) confirmed the action of the AO by stating that since the AO has not made any separate addition, considering the facts of the case, the addition is justified and no interference is called for. 10. After hearing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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