TMI Blog1991 (4) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax Officer to the addition of Rs. 10,000 ? " The assessee is a registered firm which deals in bardan, sutali, etc. The Income-tax Officer, during the assessment proceedings, found that the sales were not supported by a quantitative tally and no day-to-day quantity stock account was being maintained. Consequently, he did not accept the book results. He also noticed that, from December 1, 1967, to December 29, 1967, no purchases had been made by the assessee, but the sales have been shown at Rs. 40,455. He worked out the cost of the sales of the goods at Rs. 37,947 and presumed that there were sales without stocks to the tune of Rs. 10,287. He was of the view that this amount was introduced by the assessee as its own cash through sales. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t time, instead of adopting the circuitous path of calling for a remand report." In this view of the matter, the Appellate Tribunal rejected the contention of the assessee regarding the justifiability of the addition of Rs. 10,000. On the merits of the case, the Appellate Tribunal found that the assessee had possessed sufficient opening stock in the manufacturing account and in the "kaltan vypar account". It noticed that the "kaltan vypar account" did not reflect the position that the goods were in fact transferred to the manufacturing account. The Tribunal, therefore, took the view that the absence of any entries, coupled with the absence of any evidence in the subsidiary registers maintained by the assessee to indicate that in fact the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and sales of kantan bales. Sometimes, whenever needed, the kantan in stock in the latter account was used for manufacture of bags, but there was no special entry passed for the purchase. This was so done, because, according to the assessee, any transfer from one account to another would be reflected when actual stocks were taken. The factual position was supported by the sworn affidavit of the chartered accountant of the assessee wherein he gave the details of the manner in which the assessee's accounts were maintained. By its order dated September 11, 1975, the Tribunal accepted the contents of the affidavit of the chartered accountant of the assessee overruling the contention of the Department that it was always easy to procure such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have done better by recording a clear finding on this aspect of the matter. However, considering the fact that the amount involved is a small amount and more than 14 years have already passed in litigation, we do not propose to remand the matter to the Tribunal for giving effect to our order on the factual aspects of the merits, as we find that the affidavit of the chartered accountant of the assessee on record gives full details of the merits of the case and the contents thereof have been totally accepted by the Tribunal. In the circumstances, we are of the view that the Tribunal was justified on making the deletion. We, therefore, answer the question in the affirmative and in favour of the assessee. There would, however, be no order a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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