TMI Blog2003 (9) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO on account of fictitious purchases. The main contention of the AO for treating the entire purchases are as under: (i) The goods purchased from unregistered dealers are completely unvouched. (ii) Not a single purchases was made from registered dealer. (iii) That normally payment is required to be made to the unregistered dealer immediately but in the case of the assessee the payments are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he perusal of Trading a/c shows that AO admitted the sales of Rs. 8,29,646. The AO admitted the opening stock and closing stock. The AO admitted the wages amounting to Rs. 4,62,907 incurred on such marble slabs and blocks and other expenses like block cutting, loading, purchase tax, packing, royalty block dressing, etc. These expenses would not have been incurred if there was no purchases made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of finished goods was not possible. (iii) The second allegation of the AO that the assessee sold the goods which were the accumulated stock of earlier years is also incorrect. If it is so then the AO ought to have treated the entire sales of Rs. 8,29,646 as income or increase the value of opening stock as the income is to be assessed of the relevant year and accumulated stock of earlier years c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not (sic) unvouched and purchases had been made in cash from unregistered dealers. The AO had admitted the sales and other expenses incurred on the material and also have accepted the sale of materials. Hence, there was no justification to reject the claim of purchases for want of proper vouchers or non-production of persons who sold the same. We agree with the contention of the learned authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 24,000 on account of unexplained cash credits. 7. We have perused the relevant facts of the case in which the learned CIT(A) has set aside the addition of Rs. 24,000 with the direction to make afresh assessment after granting the reasonable opportunity of being heard to the assessee. In the light of decision of Hon ble Rajasthan High Court in the case of Prem Agency vs. CIT (1988) 67 CTR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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