TMI Blog2003 (9) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... osed purchases of Rs. 18,135. ( ii )Deleting the addition of Rs. 2,09,000 on account of undisclosed closing stock." 2. The assessee has also filed cross objections to the appeal of the department, grounds of which are given below : "( i )That the assessment completed under section 144 of the Act, without complying with the first proviso to section 144(1) is illegal, bad-in-law and on facts. ( iii )Any other ground shall be prayed at the time of hearing." 3. The Assessing Officer completed the assessment under sections 144, 264 and determined the total income at Rs. 2,60,260 as against return income of Rs. 42,120. The assessee derived income from sale of wheat, rice as well as sugar and commission income. During the course of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. The 1st ground of the department s appeal pertains to the action of the CIT(A) in deleting the addition of Rs. 18,135 on account of profit earned on undisclosed purchases of Rs. 18,135. The Assessing Officer made certain queries from different manufacturers. Of these manufacturers, Rahudi Cooperative Sugar Factories Ltd., Shitoli vide letter dated 17-10-1997 confirmed the purchase of Rs. 1,57,800. Apart from this, Kissan Sahkari Sugar Factories, Shitoli, denied the sale of Rs. 3,13,330 to the assessee. In view of these, the Assessing Officer deducted Rs. 3,13,330 from Rs. 15,63,970 and determined Rs. 12,50,670 as undisclosed purchases on which he determined gross profit @ 1.45 per cent which resulted in addition of Rs. 18,135. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of the balance sheet as on 31-3-1998 submitted by the assessee in State Bank of Indore, Chhatarpur. 11. Shri S.C. Baberia, DR relied on the order of the Assessing Officer. 12. Shri B.K. Nema, Advocate, reiterated his arguments and as far as the addition was concerned the assessee was neither; confronted with the information collected by the Assessing Officer, nor was given any reasonable opportunity to submit her explanation. He also pointed out that in the fresh assessment made by the Assessing Officer on the basis of the order under section 264, preferred by CIT, Gwalior, the scope of enquiry under section 264 was made clear by the CIT. This relates only to purchases made by the assessee. While making the addition of Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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