TMI Blog2004 (5) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... shed the confirmation at the time of original assessment; and that this appeal is in second round and the assessee has furnished the confirmation of Rs. 25,000 before the AO with GIR number in second round and also furnished copy of accounts (pp. 1 and 3 of the paper book) duly confirmed by the creditor, M/s Cresswell. He has confirmed that the AO s finding regarding alleged contradiction is factually incorrect. He has contended that the director of the company appeared before the AO and confirmed the credit. He has contended that the credit was received through cheque and that the company is an existing IT assessee; the company had sufficient funds to advance loan. He has confirmed that Rs. 50,000 was deposited in firm s account by account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on which the AO made the addition was contradiction between confirmation letter filed by the assessee showing outstanding balance of Rs. 25,000 and the books of account of the assessee, showing the balance amount of Rs. 25,000 having been adjusted on 30th March, 1990, against the purchase of a pulvariser by the creditor-company of assessee. However, from the perusal of record it is revealed that the creditor is an IT assessee and its GIR number was also furnished by the assessee to the AO, along with the confirmation letter. The amount of loan was received by the assessee from the creditor by the account payee cheque of Canara Bank, the details of which are given in top para on p. 4 of the assessment order, and the same was deposite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol expenses 2,500 (c) Depreciation 10,955 6. The learned Authorised Representative of the assessee has contended that the AO has made excessive disallowance and addition @ 25 per cent and so the Tribunal may grant appropriate relief to the assessee. 7. The learned Departmental Representative has contended that the disallowance/addition made by the AO is not excessive. He has contended that the assessee even did not maintain log book in respect of use of car. He has contended that no further relief should be given to assessee. 8. I have considered the rival contentions as also the relevant material on record. Considering all the facts and circumstances of the case, I find that the above disallowances/additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmation is placed at p. 13 of the paper book wherein also the factum of discount (Muddat) of Rs. 110 is specifically mentioned as having been given to the assessee. 12. As regards Prem Chand Paras Mal Jain, he has contended that the transaction took place on 25th Dec., 1989, the day on which it was a bank holiday; so the assessee made the payment in cash due to urgency of seller. He has contended that the seller s confirmation is placed at p. 15 of the paper book. He has also contended that this seller was new to the assessee and so he was pressing for payment in cash. 13. As regards Asha Ram Soni Co., he has contended that neither the assessee nor the seller had bank account at Osian; and the seller was new to the assessee so the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l submissions as also the relevant material on record. Considering the fact-situation of each of the above 5 parties, to whom the assessee made the payment in cash, as detailed above in the ground as discussed above, I am of the view that the assessee made the aforesaid payment in cash due to exceptional circumstances being of insistence for payment in cash by the seller party, the discount being available on cash payment and the day of payment being holiday as also the fact that neither of these two parties, i.e., purchaser and seller having bank account at Osian; supporting seller s confirmation too are placed on record. In that view of the matter, I find no justification for these additions and so I delete the same. 18. Ground No. 4 di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of record, I find that the AO has made this addition finding the stock in excess due to taking the wastage/shortage resulting from conversion of Guar into Churi Korma, etc. at 3 per cent, i.e., much higher than that shown by the assessee which was .78 per cent. From the perusal of the record, I do not find any material on record supportive of AO s action in taking the shortage/wastage at the rate as he has done in the assessment order. In that view of the matter, considering the facts and circumstances of the case, I find the AO s action finding the stock in excess and in making the addition accordingly to be not justified and uncalled for I, therefore, delete the addition. 21. Ground No. 5 disputes the charging of interest under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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