TMI Blog2011 (9) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... the same was duly shown as shortage in the cash chest. Since the figure tallies, there is no reason to reject the assessee's explanation out rightly. - Income Tax Appeal No. 73 of 2009 - - - Dated:- 6-9-2011 - Devi Prasad Singh, Dr. Satish Chandra, JJ. D.D. Chopra for the Appellant S.K. Garg for the Respondent JUDGEMENT Satish Chandra: This appeal has been filed by the department under Section 260A of the Income Tax Act, 1961 against the judgment and order dated 6.2.2009 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A No.875/Luc/2008 for the assessment year 2003-04. 2. Brief facts of the case are that the assessee is Pvt. Ltd Company and engaged in the business of running of solvent extraction plant and sale of Rice Bran oil and Mustard oil etc. During the assessment year under consideration, the assessee has filed the return showing details of income of Rs. 24,73,110/.The case was selected for the scrutiny. During scrutiny the A.O. after seeking clarification from the assessee has made additions which were not only deleted by the first appellate authority but also by the Tribunal. Still not being satisfied, the department has file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f which comes to Rs. 1 crore. He also submits that though the amounts were mentioned separately for the convenience, but during the assessment year under consideration, these were clubbed together and consolidated balance of Rs. 1 crore was shown in schedule (IV) in the audit report, the said entries were verifiable and the copies were also produced before the A.O. It was also submitted by the counsel for assessee that the amount of Rs. 40 lacs shown under the head share application money was not appearing in any other place separately in the books of accounts and to avoid confusion, both the accounts were clubbed together by transferring Rs. 40 lacs from the head "share application money" to the head "unsecured loan" by passing a general entry which was verifiable from the books of accounts. So, no income was suppressed. "Share application" money has since not been reflected in the books of accounts separately, it has been merged with Rs., 1 crore and therefore, there is no reason to make any addition. 7. We have heard both the counsels at length and gone through the material available on record. From the record, it appears that as on 31.3.2003, the figure of Rs. 1 crore was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n cash book for purchase of demand draft in favour of Bank of Baroda credit care although the demand draft of Rs. 75,000.00 has been made in favour of Bank of Baroda Credit Card was not perverse. 11. The second grievance of the assessee is pertaining to the addition of Rs.75,000. From the perusal of schedules forming part of P and L A/c as on 31.2.2003, it appears that in serial No.15, a sum of Rs. 1,86,260 has been shown as "recovery" under the head "cash found short in the chest". The loss was debited under the head "cash suspension". The said amount was taken by the cashier and the same was returned during the next year. The A.O. was not satisfied, so he made addition which was deleted not only by the first appellate authority but also by the Tribunal. 12. With this background, Sri Chopra submits that the assessee has not debited Rs.40,000.00, 20,000.00 and 15,000.00 on 18.6.2002, 15.7.2002, and 17.7.2002 respectively in cash book for purchase of demand draft in favour of Bank of Baroda by credit card. It shows that the assessee has purchased the said demand drafts amounting to Rs. 75,000 from bank of Baroda. Regarding mis-appropriation of funds by the cashier, no FIR wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m quantitative details of raw material and finished goods. But the A.O. was not satisfied and he made addition of Rs. 17,18,894. The first appellate authority as well as the Tribunal has deleted this addition. 15. With this backdrop, Sri D.D. Chopra learned counsel for appellant justified the A.O's order. He submits that the details pertaining to HSD shown by the assessee were not correct as mentioned by the A.O. It was further submitted that the assessee has shown excess consumption of paddy husk of Rs. 8,93,945/for which explanation furnished by the assessee is not satisfactory. The assessee has furnished different figures of fuel HSD and fuel husk right from filing of return till to furnishing of replies during the course of assessment proceeding. The total of fuel husk and transportation of husk comes to Rs. 42,78,720. The assesse has also not given correct figure of consumption of fuel husk. In the absence of any positive evidence, the sum of Rs.8,24,949 (HSD) and Rs.8,93,945/(Husk) totaling of Rs.17,18,894/is being treated to have not incurred on this account and it was rightly added by the A.O. to the total income of the assessee. The purchases made of HSD and Husk which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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