TMI Blog1983 (3) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee in respect of Seetharam Chaturbhuj do not tally with the sales recorded by the assessee. It was the version of the assessee that the sale of oil and oil cakes was effected through Seetharam Chaturbhuj being commission agent. 3. It may be stated at this stage that the Sales Tax Authorities had raided premises of Seetharam Chaturbhuj and in a particular diary of notebook they found that sales in the name of this assessee were mentioned and the sales amounted to Rs. 2,28,121. The Sales Tax Authorities had asked the assessee about the sale transaction which was flatly refused by this assessee and he stated that he had nothing to do with the sales allegedly shown in his name in the books of Seetharam Chaturbhuj. The ITO considered this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, he deleted the addition made by the ITO i.e., the G.P. of Rs. 13,320 on the sales of Rs. 2,28,121. 5. Regarding the point of capital employed the AAC observed that since the sales were not taken to be those of the assessee, the question of capital employed does not arise and accordingly he deleted Rs. 10,000 on that count also. 6. The department is aggrieved with the order of the AAC hence this appeal before the Tribunal. 7. Shri Trimal, the departmental representative, at the very outset stated that the order of the AAC has not given sound reasoning for deletion of the amounts added by the ITO. In fact the departmental representative stated that the AAC has simply gone on the footing of the affidavits filed by the two per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no justification for holding that the transaction is of this assessee. Shri Avadhani placed before me a compilation running into 12 pages wherein he has given details and he drew my attention to the affidavits filed by Shri Bhagwan (munim) and Vijayakumar, the proprietor of Seetharam Chaturbhuj. Shri Avadhani stated that right from the initial stage the assessee is denying that the transaction does not at all belong to this assessee and for that purpose he drew my attention to page 12 of the compilation wherein he has clearly stated that the cash drawings have been bearing the signature under the name of Bhagwan or Vijaykumar. In the said letter the assessee has stated that the transaction shown to him from the above two diaries do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain stated that the transaction in question do not pertain to the appellant (this assessee). In para 3 of his letter states that "furthermore, it is also submitted that without prejudice to the above under section 16(2), the primary liability of tax was that of the agent Sitaram Chaturbhuj. Accordingly, the said turnover has been included in his turnover and the same has been taxed at this point and the said tax too has been duly collected." Shri Avadhane made another point that if really the assessee had effected the sales to the tune of Rs.2 lakhs and odd there should have been some unit consumption by the assessee and for that purpose he draw my attention to page 4/2 of the compilation wherein he has given details of the amount that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avits by two persons mentioned earlier was an after thought. Even in their examination nowhere have they accepted that the sales of oil and oil seeds of Rs. 2 lakhs and odd were the sales of this assessee and, therefore, it is unwise to draw such an inference. 13. In case the assessee really had effected the sales of Rs. 2 lakhs and odd naturally the assessee would have been required to use the machines which only work on electricity and as such there would have been more consumption of units for such a huge trunover. The assessee's page 4/2 giving details is very much helpful to decide the case in favour of the assessee on that count also. I hold there was no manufacture of oil or crushing of seeds by the assessee and it is worthy to not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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