TMI Blog1994 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-firm, that the withdrawals of the partners for household purposes were rather meagre and that the consumption of coal for the manufacture of bricks came to 21.5 tonnes per lakh of bricks which was on the high side. In the absence of any stock register for manufacture and consumption of bricks, the Assessing Officer invoked the provisions of proviso to s. 145(2) of the IT Act. According to him, the assessee by consuming 431 tonnes of coal would have manufactured 21,55,000 bricks as against the figure of 20,18,150 shown by the assessee. Thus, according to the Assessing Officer, the assessee manufactured extra bricks amounting to 1,36,850 which were disposed of outside the books of accounts. Applying sale rate of Rs. 375 per 1000 bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee for the year relevant to asst. yr. 1988-89 accepted the sale figure shown by the assessee. It was also pointed out that in the case of assessee's sister-concern, namely, M/s Parkash Chand Gupta, B.K.O., for asst. yr. 1987-88, an addition of Rs. 12,600 was made on agreed basis but that for asst. yr. 1988-89, the net profit rate of 8% was accepted in the case of that sister concern. It was also pointed out that for asst. yr. 1986-87 on sales of Rs. 6,39,236, net profit rate of 8% was shown by the assessee which was accepted by the Department. Similarly, it was further pointed out that the assessee showed net profit rate at 8% for the asst. yr. 1987-88 on total sales of Rs. 10,52,523 which was again accepted by the Department. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verted by the learned Departmental Representative. The assessee has also filed a circular letter from the Director of Food and Supplies Deptt. which says that the consumption of 21.6 MTs. of coal should be taken for manufacturing 1 lakh bricks. The assessee has shown consumption of coal at 21.5 tonnes per 1 lakh bricks which appears to be quite reasonable. Moreover, there is absolutely no evidence that the assessee had suppressed its sales. From the alleged excessive consumption of coal, the Assessing Officer has jumped to estimation of sales made outside the books of accounts which is not warranted on the facts and circumstances of the case. In the two preceding assessment years, the assessee had shown net profit rate of 8% which was accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arriage receipt was quite reasonable and should have been accepted and that the learned CIT(A) should not have estimated the profit from this source at Rs. 4,000. 10. After considering the submissions of the parties, we find that the total carriage receipts had been shown at Rs. 18,231. The learned counsel for the assessee gave us to understand that the assessee-firm was not having its own transport vehicles and that it was arranging others' transport vehicles to transport the bricks. We put it to the learned counsel for the assessee to let us know as to who were the parties to whom carriage expenses were paid and the details thereof. The learned counsel could not enlighten us on this issue. In the absence of actual details of payments m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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