TMI Blog2000 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... the detailed reasons discussed in the assessment order, the Income-tax Appellate Tribunal was right in law in holding that the account books did not deserve to be rejected? (ii) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in deleting additions of Rs. 6,26,615 and Rs. 3,78,484 for the first period and second period, respectively, in rice, rice bran, phak and husk accounts made by the Assessing Officer and additions of Rs. 1,04,000 and Rs. 74,400 confirmed by the Corn missioner of Income-tax (Appeals) in rice account and phak account?" A perusal of the record shows that the return filed by the assessee (respondent) for the accounting period from September 1, 1987, to March ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication filed by the Revenue under section 256(1) of the Act was also rejected by the Tribunal. We have heard Shri R. P. Sawhney and perused the record. The Tribunal has dealt with the issue relating to the additions made by the assessing authority in the following words: "We have considered carefully the submissions made by both the parties and have perused the orders of the Departmental authorities. It is observed that the Assessing Officer has proceeded to adopt yield of rice and various by-products on the basis of report of PAU before working out the addition in respect of both the periods. It is also observed that the Commissioner of Income-tax (Appeals) has clearly held that bulk of purchase of paddy were made in the months of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eted. With reference to yield of phak it is observed that the assessee did not show any yield for the first period and the Assessing Officer worked out yield of phak at 3 per cent. and by applying the market rate of Rs. 80 per qtl. he made an addition of Rs. 1 lakh. Similarly, he worked out yield of phak for the second period at 566 qtls. and by applying a rate of Rs. 102 per qtl. as shown by the assessee, worked out addition of Rs. 57,732. The Commissioner of Income-tax (Appeals) observed that yield of phak ranges between 2 to 3 per cent. of rice obtained. He worked out suppression of yield of phak to the extent of 571 qtls. for the first period and applying a rate of Rs. 100 per qtl. worked out addition at Rs. 57,100. Similarly, he appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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