B.L. Chhibber, (Accountant Member) - (1.) THIS appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-I, Ahmedabad. Ground No. 1 reads as under : " The learned Commissioner of Income-tax (Appeals) has erred in not granting an opportunity of being heard to the Income-tax Officer in spite of specific request."
(2.) During the course of hearing before us, we specifically asked the learned Departmental Representative to check up from the record whether no opportunity to represent was given to the Income-tax Officer. The learned Departmental Representative was fair enough to state that there was nothing on record to show that the opportunity was denied to the Income-tax Officer. Accordingly, we do not find any merit in this ground and dismiss the same. Grounds Nos. 2 and 3 read as under : (2) The learned Commissioner of Income-tax (Appeals) has erred in deleting the addition of Rs. 10,85,003 made on account of unaccounted cash sales. (3) The learned Commissioner of Income-tax (Appeals) has erred in directing to adopt the gross profit only on Rs. 2,43,339 when addition was made for undisclosed sales of Rs. 10,85,003.
(3.) THE assessee, an individual, deals in tyres manufactured by different companies. A search was conducted at the business and residential premises of the assessee on September 6 and 7, 1984. Loose papers belonging to items C-4 to C-15 were seized from the residence of the assessee at 7, Sunrise Park, Ahmedabad. On a scrutiny of these loose papers, the learned Income-tax Officer noted that these loose sheets comprised daily sales effected for the period from July 15, 1983, to the end of June, 1984, and these sheets record the sales effected by the assessee on cash and credit basis. THE Income-tax Officer examined these loose sheets with reference to the books of account of Punjab Tyres and Paul Tyres for the period up to March 31, 1984, with the help of the accountant of the assessee and found that sales to the tune of Rs. 10,85,003 were not found either in the books of Punjab Tyres or Paul Tyres. In response to the show-cause notice issued by the Income-tax Officer, vide his letter dated March 27, 1987, the assessee filed a detailed explanation which has been reproduced by the Income-tax Officer on page 4 of his order. THE Income-tax Officer was not satisfied with the explanation furnished and made an addition of Rs. 10,85,003 on account of unaccounted sales.;