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TMI Blog2003 (4) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... de at Rs. 1,88,480 being un explained investment in the manufacturing process of the bricks and profits earned on the unrecorded sales thereof? 2. Whether the learned Income-tax Appellate Tribunal was justified in law in holding that the assessee maintained complete record of manufacturing process especially when admitted by the assessee that no books of account and other record whatsoever was maintained in respect of kiln owned under the name and style of Shiv Shakti Gram Udyog Larth? 3. Whether the learned Income-tax Appellate Tribunal was justified in law in holding that no material was brought on record to the purchase of coal at 315.970 m.t. particularly when bills issued by the seller having signature of the assessee are placed on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of coal to the assessee, but at the same time, stated that no payment had been received by him during the accounting year 1990-91. Thereafter, vide order dated March 29, 1996, the Assessing Officer made further addition of Rs. 1,88,480 in the income of the assessee. The assessee challenged order dated March 29, 1996, by filing an appeal before the Commissioner of Income-tax (Appeals), Jalandhar (for short, "the CIT(A)"). During the pendency of the appeal, Shri Parshotam Lal died and his son, Kumar Maini, got himself substituted in his place. By an order dated June 16,1999, the Commissioner of Income-tax (Appeals) dismissed the appeal and upheld the additions made by the Assessing Officer. However, the second appeal filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 29, 1996, passed by the Assessing Officer shows that he had made additions of Rs. 1,88,480 to the income of the assessee on the basis of the statement made by Jeet Singh under section 131 of the Act, 17 bills dated December 24, 1990, produced by him, the fact that purchase of 315.970 m.t. coal had not been shown in the books of account maintained by the assessee and the presumed manufacture of bricks by use of that quantity of coal. The Commissioner of Income-tax (Appeals) confirmed the additions by recording the following observations: "There is no dispute about the fact that Modem Coal Co. had issued certain sales bill showing sale of 315.970 m.t. of coal to the proprietary concern of the assessee. There is also no dispute that these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Coal Co. cannot be accepted. The Assessing Officer has been very fair in so much as that he did not make the total addition of the unaccounted purchases made by the assessee which would have come to Rs. 4,98,342. The Assessing Officer has only estimated the investment in the coal, manufacturing process and the freight to the extent of Rs. 1 lakh and added the net profit of 10 per cent. on estimated sale of bricks manufactured out of alleged coal amounting to Rs. 88,480. The estimate of the number of bricks manufactured is on scientific basis and was calculated after ascertaining the ratio of number of bricks manufactured vis-a-vis consumption of coal. In these circumstances, the addition of Rs. 1,88,480 made by the Assessing Officer was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear under appeal had shown the coal consumption at 366.5 m.t. as compared to the coal consumption in the subsequent two years, i.e., the assessment years 1992-93 and 1993-94 of 355.7 m.t. and 304.8 m.t., respectively. Similarly, the assessee has shown the bricks manufactured in the assessment year under appeal numbering 18,35,000 and whereas in the subsequent two assessment years, viz. 1992-93 and 1993-94, numbering 19,80,000 and 15,20,000, respectively. Similarly, the bricks sold in the assessment year under appeal numbering 19,33,000 and two subsequent assessment years, the bricks sold are numbering 17,63,000 and 15,54,000, respectively. The Department has not stated that the capacity of the kiln to manufacture bricks is about 35 lakhs or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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