M/s Kalliyath Wire Distributers, Calicut V. ACIT, Calicut

ITA 535/COCH/2008

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4520 (ITAT-COCHIN)
• Duration Of Justice: 3 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 02-05-2011
• Assessment Year: 1991-1992
• Appeal Filed On: 10-04-2008
• Court: TRIBUNAL
• Department Lawyers: DR BABU JOSEPH
• Assessee Lawyers: C B M WARRIER
• Keywords: Bogus purchase; Unexplained investment; Opportunity of being heard; Additional evidence; Cost of acquisition; Wrong claim
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE T RIBUNAL COCHIN BENCH, COC HIN BEFORE S/SHRI N.VIJAYAKUMARAN, JM AND SANJAY ARORA , AM I.T.A. NO.535/COCH./2008 ASSESSMENT YEAR : 1991-92 M/S. KALLIYATH WIRE DISTRIBUTORS, OPP. R.K.MISSION HIGH SCHOOL, PANNIANKARA, CALICUT. [PAN: ACJPA 3890M] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, INVESTIGATION CIRCLE- 1, CALICUT. (ASSESSEE-APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI C.B.M.WARRIER, CA REVENUE BY DR.BABU JOSEPH, SR.DR O R D E R PER SANJAY ARORA, AM : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER BY THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, CALICUT (CIT(A) FOR SHORT ) DATED 22.1.2008, AND THE ASSESSMENT YEAR (A.Y.) UNDER REFERENCE IS 1991-92. 2.1 THE PRESENT APPEAL BY THE ASSESSEE RELATES TO THE DISCREPANCIES NOTICED IN THE ASSESSEE S ACCOUNTS, A PARTNERSHIP FIRM DEALING IN IRON SCRAP, WHICH WERE FOUND CONSEQUENT TO SEARCH IN ITS BUSINESS PREMISES FROM 29.11.1990 TO 25.1.1991 U/S. 132 OF THE INCOME-TAX ACT, 1961 ('THE ACT' HEREINAFTER) . VIDE ITS DIFFERENT GROUNDS OF APPEAL, THE ASSESSEE AGITATES VARIOUS COMPONENTS OF ADDITION TOWARD THE DIFFERENCE(S) IN THE STOCK OBSERVED DURING SEARCH, AND WHICH WE S HALL TAKE UP IN SERIATIM AFTER GIVING THE BACKGROUND FACTS OF THE CASE. THE PHYSI CAL STOCK TAKING THEREAT, WHICH STOOD CONCLUDED ON 27.12.1990, REVEALED A TOTAL MET AL SCRAP AT 392.010 M.T., INCLUDING 71.24 MT OF LIGHT METAL SCRAP. THE TOTAL PURCHASES FOR THE PERIOD 1.4.1990 TO 29.11.1990, INCLUDING OPENING STOCK (AS ON 01/4/ 1990) AMOUNTED TO 3699.937 MT. AGAINST THIS, THE TOTAL SALES, INCLUDING SCRAP SENT FOR RE-ROLLING DURING THIS PERIOD, STOOD AT 3967.321 MT. AS SUCH, THE BOOK STOCK AS O N 29.11.1990 STOOD AT A DEFICIT OF ITA. NO. 535/COCH./2008 2 267.384 MT. THE TOTAL EXCESS STOCK WAS THUS DETERMI NED AT 659.394 MT (392.010 + 267.384). A FURTHER SCRUTINY OF THE RECORDS REVEAL ED THAT 208.632 M.T. OF THE SAID EXCESS STOCK PERTAINED TO THE PREVIOUS YEAR ENDING 31.3.1990, SO THAT THE SAME DID NOT PERTAIN TO THE CURRENT YEAR. ACCORDINGLY, THE EXCE SS STOCK RELEVANT FOR THE CURRENT YEAR, FOUND ON ACTUAL VERIFICATION, AS ON 29.11.199 0, WAS WORKED OUT AT 450.762 MT (659.394 208.632). THE SAME WAS VALUED AT RS. 50 00/- PER METRIC TONNE, TO YIELD AN UNEXPLAINED STOCK OF SCRAP VALUED AT RS. 22,53,810/ -. THE ASSESSEES OBJECTION MADE WITH REFERENCE TO THE STOCK REGISTER, WHICH ALSO ST ANDS DEALT WITH SUBSEQUENTLY BY THE LD. CIT (A) IN GREATER DETAIL, WAS FOUND AS WITHOUT MERITS. 2.2 FURTHER, THE RESIDENTIAL PREMISES OF ONE O F THE ASSESSEES EMPLOYEE, SHRI V.T. MOHAMMED KUTTY, STOOD ALSO SEARCHED ON 29.11.1990. THE SAME YIELDED EVIDENCE REGARDING PURCHASE OF SCRAP AND ADVANCES TO THE VAR IOUS SCRAP DEALERS TOWARD PURCHASES, AND DOCUMENTS IN RELATION THERETO SEIZED . THE TOTAL ADVANCES TO THE VARIOUS SCRAP DEALERS AS ON 31.10.1990, AS REVEALED BY ONE OF THE SEIZED PAPERS, WORKED TO RS. 6,66,030/-. ON BEING SHOW-CAUSED IN THE MATTER , THE SAME BEING LIABLE TO BE ADDED U/S. 69 OF THE ACT, THE ASSESSEE ASKED FOR VERIFICA TION OF THE SEIZED MATERIAL AND COPY OF THE STATEMENT OF SHRI MOHAMMED KUTTY. WHILE THE MATERIAL SEIZED BEING RELIED UPON BY THE REVENUE STOOD VERIFIED BY THE ASSESSEE S COUNSEL, THE LD. AR BEFORE US, THE ASSESSEE WAS ASKED TO PRODUCE SHRI MOHAMMED KUT TY FOR EXAMINATION AS NO STATEMENT OF HIS STOOD RECORDED DURING THE SEARCH, AND WHICH THE ASSESSEE COULD NOT COMPLY WITH, STATING OF HIS BEING NO LONGER IN ITS EMPLOYMENT AS THE REASON. AT THE SAME TIME, VARIOUS MATERIALS SEIZED FROM SHRI KUTTY S RESIDENCE, I.E., THE EMPLOYEE HANDLING THE ASSESSEES PURCHASES, VIZ. PRINTED PU RCHASE VOUCHERS (BOUGHT OUT NOTES), DETAILS OF PAYMENTS MADE TO VARIOUS SCRAP SUPPLIERS , THE PARTICULARS OF SCRAP SUPPLIED TO STEEL COMPLEX, WAY BILLS, ALL ESTABLISHING, WITH OUT DOUBT, THAT THE SAME RELATED TO THE ASSESSEES TRANSACTIONS OF SCRAP PURCHASES, THE SAME STOOD ADDED TO THE INCOME U/S. 69/69B OF THE ACT, BEING ADVANCES TO THE SCRAP SUPP LIERS AS ON 31.10.1990 MADE OUTSIDE THE BOOKS OF ACCOUNTS. ITA. NO. 535/COCH./2008 3 2.3 THE THIRD ADDITION BY THE ASSESSING OFFICER (A. O.) WAS IN RESPECT OF BOGUS PURCHASE(S) FROM AND, CONCOMITANTLY, BOGUS CLAIM OF THE CREDIT IN ITS ACCOUNTS IN THE NAME OF ONE, SHRI A. IBRAHIM, STAR METALS, TRIVANDR UM. THE ACCOUNTS OF THE SAID PARTY IN THE ASSESSEES BOOKS FOR THE YEAR SHOWED T OTAL PURCHASES AT RS. 2,93,232/- (FROM 27.9.1990 TO 28.11.1990), WITH THE PAYMENT OF RS. 70,140/- ON 26.3.1991, SO THAT A NET CREDIT BALANCE OF RS. 2,23,092/- STOOD R EFLECTED IN THE ACCOUNT OF THE SAID PARTY AS AT THE YEAR-END. THE DEALER WAS SUBJECT T O VERIFICATION BY THE AUTHORISED OFFICER, RECORDING A STATEMENT OF SHRI IBRAHIM ON O ATH ON 27.12.1990, REVEALED A BALANCE OF RS. 58,271/- AS OUTSTANDING AS ON THAT D ATE. AGAINST THE SAID SALES, HE HAD ISSUED TWO BILLS, I.E., NO. 855 (DTD. 27/9/1990) AN D NO. 856 (DTD. 28/9/1990) FOR RS. 27,726/- AND RS. 30,544/- RESPECTIVELY, WHICH WERE PREPARED LATER ON. IT WAS EXPLAINED THAT THE SALES TO THE ASSESSEE WERE MADE SANS ANY BILLS IN THE FIRST INSTANCE, AND SUBSEQUENTLY BILLS AS REQUIRED BY IT WERE PREPARED. APART FROM THIS, HE ALSO CONFIRMED TO HAVING FURNISHED OTHER BILLS, I.E., AS BEING REF LECTED IN THE ASSESSEES ACCOUNTS. FURTHER ON, ON THE ASSESSEES REQUEST, HE SUPPLIED TWO BLANK EXTRA COPIES FOR EACH OF THE BILLS, WHILE RETAINING ONE COPY OF THE BILL AS PREPARED BY HIM IN HIS BILL-BOOK. IT WAS FOUND BY THE AO THAT THE HANDWRITING IN THE BIL LS RETURNED BY THE ASSESSEE TO SHRI IBRAHIM AND THAT RETAINED BY HIM IN THE BILL-BOOK W AS CLEARLY DIFFERENT, CORROBORATING HIS STATEMENT. THE ASSESSEE WAS CONFRONTED THEREWIT H, TO WHICH THE ASSESSEE REPLIED BY STATING THAT ITS ACCOUNTS BORE THE ACTUAL TRANSACTI ONS, AND THAT IT HAD PAID THE ENTIRE BALANCE AMOUNT TO THE SAID SUPPLIER BY DRAFT ON 26. 3.1992 . THE AO FOUND NO REASON NOT TO ACCEPT THE DEPONENTS STATEMENT, CONSIDERING THAT NO CREDITOR WOULD DENY DUES TO HIM EXCEPT WHERE IT IS ACTUALLY NOT SO, SO THAT THE TRUTH WAS BORNE OUT BY THE STATEMENT ITSELF. FURTHER, THE STATEMENT WAS NOT ON E OF DENIAL, BUT ONLY PART-ACCEPTANCE INASMUCH AS THE SUPPLIER HAD ADMITTED HAVING MADE T HE SALES TO THE ASSESSEE FOR RS. 58,271/- AND HAVING RECEIVED RS. 40,000/- IN CASH O N 1.10.1990 THERE-AGAINST. THE AO, THEREFORE, ADDED THE AMOUNT OF UNCONFIRMED PURC HASE, OR RS. 2,35,016/- (2,93,232 58,217(*)) AND THE CASH PAYMENT OF RS.4 0,000/- ON 1.10.1990, I.E., RS. 2,75,016/-.(*) (THE ACTUAL FIGURE IS, HOWEVER, 5827 1). ITA. NO. 535/COCH./2008 4 3. IN APPEAL, THE MATTER WAS EXAMINED BY THE LD. CI T (A) IN DETAIL. HE CALLED FOR THE REMAND REPORT FROM THE AO, WHICH (DATED 18.4.19 95) STANDS PLACED BY THE ASSESSEE AS PART OF ITS PAPER-BOOK ( PB PGS. 32 TO 34 ), AND CONFIRMED THE ADDITION ON ACCOUNT OF UNACCOUNTED STOCK, ALLOWING ADJUSTMENTS ON THE BASI S OF THE ADDITIONAL EVIDENCE ADDUCED BY THE ASSESSEE, AT RS. 26,13,995/-, EVEN A S HE ALLOWED IT A FURTHER CREDIT IN RESPECT OF THE OPENING STOCK AS FINALLY ASSESSED FO R THE PRECEDING YEAR. IN ADJUDICATING THE MATTER, HE BROUGHT TO TAX 208.632 MT OF SCRAP, I.E., WHICH STOOD ALLOCATED BY THE AO TO THE IMMEDIATELY PRECEDING YEAR. AS REGARDS TH E BOGUS PURCHASES AND THE RESULTANT BOGUS CREDIT IN THE NAME OF SHRI IBRAHIM, HE CONFIRMED THAT THE ASSESSEES ACCOUNTS REVEALED BOGUS PURCHASES FROM THE SAID PAR TY. HOWEVER, AS THESE DID NOT REPRESENT ACTUAL PURCHASES, THE SAME FORMED PART OF THE UNEXPLAINED EXCESS STOCK FOUND IN SEARCH. ACCORDINGLY, HE REDUCED THE ADDITI ON AS MADE BY THE VALUE OF BILL NOS. 908, 890 TO 893, I.E., RS. 1,85,928/-, CONFIRM ING THE BALANCE RS. 89,132/- (275060 185928). THERE IS NO DISCUSSION IN HIS ORDER AND, CONCOMITANTLY, NO ADJUDICATION IN THE IMPUGNED ORDER IN RESPECT OF THE THIRD ADDITION OF RS. 6,66,030/-. 4. WE HAVE HEARD THE RIVAL CONTENTIONS, AND PERUSED THE MATERIAL ON RECORD. WE SHALL TAKE UP THE ASSESSEES APPEAL GROUND-WISE. 5. THE FIRST GROUND IS GENERAL IN NATURE WARRANTING NO SPECIFIC ADJUDICATION. 6.1 VIDE ITS SECOND GROUND, THE ASSESSEE CLAIMS THA T CONSEQUENT TO THE ORDER OF THE FIRST APPELLATE AUTHORITY IN ITS CASE FOR THE IMMED IATELY PRECEDING YEAR, I.E., A.Y. 1990- 91, ITS CLOSING STOCK FOR THAT YEAR STANDS ENHANCED BY RS. 9,21,222/-, I.E., W.R.T. THE BOOK STOCK AS AT 31/3/1990. ADVERTING TO THE PROFIT AND LOSS ACCOUNT FOR THE CURRENT YEAR, WHICH REFLECTS OPENING STOCK (AS ON 1.4.1990) AT RS. 5,92,528/- ( PB PG. 31 ), IT WAS SUBMITTED BY THE LD. AR THAT ITS BOOK PROFIT A ND SUBSEQUENTLY INCOME FOR THE YEAR WOULD NEED TO BE COMPUTED BY ADOPTING THE ENHANCED VALUE OF THE CLOSING STOCK AS ON 31.3.1990 AND, THUS, THE INCOME FOR THE YEAR LIABLE TO BE REDUCED TO THE SAID EXTENT; THE CLOSING STOCK FOR THE PRECEDING YEAR HAVING BEEN AS SESSED AT RS. 15,13,722/- ( PB PG. 47 ). ACCORDINGLY, DIRECTION FOR COMPUTING THE INCOME BY ADOPTING THE VALUE OF THE ITA. NO. 535/COCH./2008 5 OPENING STOCK FOR THE YEAR AT THAT AS ASSESSED FOR THE CLOSING STOCK FOR IMMEDIATELY PRECEDING YEAR, BE GIVEN. THE LD. DR, ON THE OTHER HAND, WOULD SUBMIT THAT THE ASSESSEE HAD RAISED LIKE CONTENTION BEFORE THE LD. CIT(A), WHO, CONCEDING THE SAME, ALREADY ALLOWED IT A REDUCTION AT RS. 7,39,570/- ON THIS COUNT. THE ADDITIONAL CLAIM IS UNWARRANTED UNDER THE CIRCUMSTANCES. 6.2 THE ARGUMENT PUT FORTH BY THE LD. AR IS UNEXCEP TIONAL, I.E., IN PRINCIPLE. THIS IS AS THE CORRECT PROFIT FOR THE CURRENT YEAR, BASED O N THE TRADING ACTIVITY FOR THE YEAR, INCLUDING THE STOCK WITH IT AS AT ITS END, WOULD RE QUIRE DUE CREDIT FOR THE STOCK BROUGHT FORWARD FROM AN EARLIER PERIOD AND AVAILABLE WITH I T AT ITS BEGINNING. HOWEVER, WE ARE UNABLE TO SEE AS TO HOW IT WOULD, IN THE CONTEXT OF THE PRESENT ADDITION, BE ENTITLED TO ANY RELIEF ON THAT ACCOUNT IN VIEW OF THE FACT THAT THE ADDITION AS MADE, AND CONFIRMED FOR MOST PART BY THE FIRST APPELLATE AUTHORITY, IS ONLY IN RESPECT OF THE UNACCOUNTED STOCK, OR UNEXPLAINED INVESTMENT IN THE EXCESS STOC K, FOUND AT ITS PREMISES, IN WORKING OUT WHICH THE CLOSING STOCK, AS FINALLY ASSESSED FO R THE IMMEDIATELY PRECEDING YEAR, STANDS ALLOWED CREDIT FOR BY THE REVENUE. TO EXEMPL IFY, THE OPENING STOCK AS ADOPTED BY THE AO IN WORKING OUT THE EXCESS STOCK (I.E., WI TH REFERENCE TO THE BOOK STOCK) WITH THE ASSESSEE IS AT 227.264 MT ( PB PG. 32 ), WHICH WOULD INCLUDE 208.632 MT APPORTIONED BY HIM TO THAT YEAR. HOWEVER, THE LD. CIT(A), WHILE COMPUTING THE UNACCOUNTED STOCK OF SCRAP, ADOPTED THE OPENING STO CK AT THE ENHANCED QUANTITY OF RS. 269.276 MT, I.E., AS PER THE ORDER OF THE FIRST APP ELLATE AUTHORITY FOR A.Y. 1990-91 (REFER: PB PG. 47, PARA 8 OF THE IMPUGNED ORDER ). AS SUCH, THE ASSESSEE, IRRESPECTIVE OF THE FINANCIAL VALUE PLACED ON THE CLOSING STOCK AS AT THE IMMEDIATELY PRECEDING YEAR- END, IN ASSESSING THE INCOME FOR THAT YEAR, STANDS ALLOWED CREDIT IN RESPECT OF THE ENTIRE QUANTITY OF OPENING STOCK, SO THAT IT GETS ADDITION AL RELIEF FOR THE INCREASE IN THE OPENING STOCK, I.E., 40.612 MT (269.276 227.264), RATHER, FOR AN ADDITIONAL 208.632 MT, OR AT A TOTAL OF 249.244 MT, AS THE SAID STOCK STANDS DETERMINED BY THE LD. CIT(A) AS FOR THE CURRENT YEAR, SO THAT IT DOES NOT FORM P ART OF THE OPENING STOCK. THE ADDITION FOR THE CURRENT YEAR, IT IS TO BE APPRECIATED, COUL D ONLY BE AND IS ONLY IN RESPECT OF THE EXCESS STOCK, I.E., OVER THE BOOK STOCK, IN WORKING OF WHICH THAT ACCOUNTED FOR IN THE ITA. NO. 535/COCH./2008 6 PRECEDING YEAR, AS WELL AS THAT BROUGHT TO TAX FOR THAT YEAR (SO THAT THE SAME IS CONSIDERED AS EXPLAINED TO THAT EXTENT), STANDS FAC TORED, OR IN RESPECT OF THE BALANCE UNEXPLAINED PORTION, WHICH ALONE WOULD BE SUBJECT T O TAX. FURTHER, THE ASSESSEE CLAIMS ENHANCEMENT I N ITS CLOSING STOCK AS ON 31.3.1990, I.E., WITH REFERENCE TO THE BOOK FIGURE AS ON 31/3/ 1990, AT RS. 9,21,222/-. FIRSTLY, THERE APPEARS TO BE A MINOR ERROR AS THE FIGURE WORKS TO RS. 9,21,194/- (1513722 592528). SECONDLY, THE SAME INCLUDES, AS A PERUSAL OF APPELL ATE ORDER FOR AY 1990-91 WOULD REVEAL ( PB 47 ), STOCK OF STEEL ROLLS, STEEL RODS, GI WIRE, ETC.; THE STOCK OF SCRAP BEING ONLY FOR, OF THE TOTAL RS. 15.14 LACS, AT RS. 11,53,099/- ( PB PG. 36 ). OUR FOREGOING OBSERVATIONS WOULD THUS BE APPLICABLE ONL Y IN RESPECT OF THE STOCK OF SCRAP. THE ADJUSTMENT TOWARD REVISION IN THE VALUE OF OPEN ING STOCK, AS DIRECTED BY THE LD. CIT(A), HOWEVER, DOES NOT MATCH EVEN WITH THE OPENI NG STOCK OF SCRAP ALONE. THERE IS NO FINDING AS TO THE BALANCE STOCK EITHER IN THE AS SESSMENT ORDER, THE REMAND REPORT DATED 18/4/1995 ( PB PG. 32-34 ), OR THE APPELLATE ORDER; THE REVENUE IT APPEARS F INDING IT OF NO MOMENT INASMUCH AS THE STOCK FOUND IN EXCE SS WAS ONLY IN RESPECT OF SCRAP, THE PRINCIPAL ITEM DEALT/TRADED IN. THE OTHER ITEMS , HOWEVER, BEING ADMITTEDLY WITH THE ASSESSEE ON 31/3/1990, WOULD EITHER BE SOLD OUT DUR ING THE CURRENT YEAR (BEFORE OR AFTER SEARCH) OR CONTINUED TO BE HELD AS ON 31/3/19 91. IF THE SAME STAND ALREADY INCLUDED IN THE OPENING STOCK OF RS. 5.93 LACS, I.E ., AS PER BOOKS, WHAT FURTHER RELIEF COULD THE ASSESSEE CLAIM?, SO THAT THE COMPOSITION OF THE OPENING STOCK IS RELEVANT, WHILE WE OBSERVE NO FINDING, RATHER, NOTHING ON REC ORD, IN ITS RESPECT. THE PRIMARY ONUS TO EXPLAIN THE STATUS, QUA EACH ITEM OF STOCK, AND FOR WHICH ITS BOOKS OF ACC OUNT WOULD BE RELEVANT, IS ON THE ASSESSEE. IT IS ONLY O N THE BASIS OF ITS EXPLANATIONS, SUBSTANTIATED WITH MATERIAL AND/OR COGENT REASONS, THAT IT COULD BE ALLOWED ANY RELIEF ON THE BASIS OF POSITIVE FINDINGS BY THE REVENUE, F INDING ITS CLAIM(S) VALID. AND FURTHER, WHERE NOT SO FOUND, AGITATED BY THE ASSESS EE BEFORE THE HIGHER APPELLATE AUTHORITIES, BY CHALLENGING THEIR FINDINGS. AS AFOR ESAID, THE ORDERS BY THE AUTHORITIES BELOW ARE BEREFT OF ANY DEFINITE FINDINGS IN THE MA TTER. ITA. NO. 535/COCH./2008 7 6.3 THE MATTER AT HEART IS SIMPLE, AND PURE, SI MPLE ARITHMETIC, REQUIRING ALBEIT TAKING IN TO ACCOUNT ALL THE RELEVANT FIGURES AT TH E SAME TIME, AND THE ISSUE HAS ARISEN, TO OUR MIND, ONLY ON ACCOUNT OF THE STOCK BEING PAR TLY ACCOUNTED AND PARTLY UNACCOUNTED AND, FURTHER, SPREAD OVER TWO YEARS. PR EPARATION OF MEMORANDA ACCOUNTS FOR EACH ITEM OF STOCK, IN THE MANNER ILLUSTRATED I N ANNEXURE-A TO THIS ORDER, WOULD HELP BRING CLARITY AND RESOLUTION TO THE MATTER, EN ABLING RECONCILIATION OF THE ADDITION MADE WITH THE BOOKS OF ACCOUNT; THE ASSESSEE HAVING COOPTED THE SAME IN ITS ACCOUNTS, WHICH IS WHAT WE SEE THE ISSUE BASICALLY AS. CLEARL Y, THE ISSUE REQUIRES PROPER EXAMINATION, WHICH IT HAS NOT RECEIVED, WITH THE AS SESSEE CLAIMING THE RELIEF BEFORE THE LD. CIT(A). UNDER THE CIRCUMSTANCES, WE, THEREFORE, ONLY CONSIDER IT FIT AND PROPER TO, VACATING ANY FINDINGS BY HIM IN THE MATTER, RESTORE THE MATTER BACK TO THE FILE OF THE LD. CIT(A) FOR AN AFRESH ADJUDICATION IN ACCORDANCE WITH LAW PER A SPEAKING ORDER, AND AFTER AFFORDING A REASONABLE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. WE DECIDE ACCORDINGLY. 7. VIDE ITS THIRD GROUND, THE ASSESSEE CLAIMS FOR R ELIEF IN RESPECT OF 10.75 MT OF LIGHT METAL SCRAP, FORMING PART OF THE PHYSICAL STO CK AS ON 29.11.1990, WHICH IS STATED TO BE OF FORGING UNITS, UNSUITABLE FOR MELTING, SO THAT IT HAS NO VALUE. FOR THE PURPOSE, THE LD. AR DREW OUR ATTENTION TO PG. 2 OF THE REMAN D REPORT ( PB PG. 33 ), WHEREIN THE BREAK-UP OF THE EXCESS STOCK AS DETERMINED BY THE A O STOOD LISTED. ACCORDINGLY, IT IS PLEADED THAT ITS VALUE AS ADOPTED, I.E., AT RS. 500 0/- PER MT, IS EXCESSIVE, AND MAY BE REDUCED TO RS.2000/- PMT. THE LD. DR, ON THE OTHER HAND, WOULD SUBMIT THAT THERE IS NO REFERENCE TO THIS ESTIMATION IN THE IMPUGNED ORD ER OR IN THE ASSESSMENT ORDER, SO THAT THE SAME DOES NOT ARISE THERE-FROM FOR THE ASS ESSEE TO BE AGGRIEVED THEREBY. 8. WE FIND THE REVENUES OBJECTION AS VALID. THE MA TTER IS ESSENTIALLY ONE OF FACT, WHILE THERE IS NO REFERENCE AT ANY STAGE; THE ASSES SMENT ORDER, THE REMAND REPORT, AND THE IMPUGNED APPELLATE ORDER BEING BEREFT OF ANY RE FERENCE THERETO, OR ANY FINDING IN ITS RESPECT. THE SAME ONLY FOLLOWS THE NON-AGITATIO N BY THE ASSESSEE OF THIS ASPECT OF THE MATTER BEFORE ANY AUTHORITY, SO THAT THERE IS N O QUESTION OF IT BEING AGGRIEVED BY ITA. NO. 535/COCH./2008 8 NON-ADJUDICATION THEREOF. AS SUCH, WE FIND NO REASO N OR CAUSE FOR ITS GRIEVANCE. FURTHER, WE MAY ALSO CLARIFY THAT THE ISSUE, EVEN O N MERITS, IS NOT AS STRAIGHTFORWARD AS IS MADE OUT TO BE, AND WOULD REQUIRE DEFINITE FINDI NGS OF FACT. FOR ONE, WITH REGARD TO IT BEING, AS CLAIMED, UNSUITABLE FOR MELTING. SECON DLY, THERE IS NO CLAIM OF THE CONCERNED STOCK BEING ACQUIRED AT A LOWER COST, I.E ., THAN THAT APPLICABLE TO OTHER (MELTING) SCRAP. EVEN IF SO, THE CLAIMS WOULD REQUI RE SOME SUBSTANTIATION, WHICH WE FIND AS COMPLETELY ABSENT. THE ADDITION, IT NEEDS T O BE APPRECIATED, IS TOWARD THE UNEXPLAINED SOURCE OF INVESTMENT IN STOCK. AS SUCH, EVEN AS WE OBSERVE NO CLAIM BY THE ASSESSEE OF HAVING ACQUIRED IT FOR FREE OR FOR A NOMINAL CHARGE, SO THAT IT HAS NIL OR NOMINAL VALUE, THE CLAIM OF A LOWER SALE PRICE OR R EALIZATION IS PER SE OF NO IMMEDIATE CONSEQUENCE. THE SAME WOULD GET AUTOMATICALLY FACTO RED IN ITS ACCOUNTS ON THE ASSESSEE REALIZING IT ON ITS DISPOSAL, AS IN THE CA SE OF ANY OTHER ITEM OF STOCK-IN-TRADE WHICH REPRESENTS AN INPUT MATERIAL. WHY, THAT BEING THE CASE, THE ASSESSEE ONLY NEEDED TO VALUE IT, AT THE YEAR-END, AT THE STATED `LOWER REALIZABLE PRICE, FOR IT TO BE ABLE TO NEUTRALIZE THE EFFECT OF A HIGHER VALUE ADOPTED WIT H REFERENCE TO ITS PURPORTED COST? FURTHER, AND WHAT IS SURPRISING INDEED, IS THAT THE ASSESSEE WOULD ONLY BE AWARE OF IT BEING NOT MELTING SCRAP AT THE TIME OF ITS PURCHASE , AND YET CHOSE TO ACQUIRE IT. AS SUCH, THE SAME MAY HAVE AVENUES OF DISPOSAL OTHER T HAN MELTING, OR MELTING PER THE REGULAR SOURCES AND, CONSEQUENTLY, VALUE, SO THAT T HE SAID FACT BY ITSELF WOULD NOT BE SUFFICIENT TO RESOLVE THE ISSUE THAT ARISES FOR ADJ UDICATION, WHICH WOULD REQUIRE FURTHER FACTUAL INPUTS FOR ITS DETERMINATION. WE, THEREFORE , DO NOT FIND ANY SUBSTANCE IN THE ASSESSEES CASE AND, ACCORDINGLY, NO MERIT IN ITS G ROUND, WHICH STANDS DISMISSED IN RESULT. 9. THE FOURTH GROUND RAISED BY THE ASSESSEE IS WITH REGARD TO THE VALUATION OF THE SCARP. THE SAME STANDS VALUED @ RS. 5000/- PER MT. THE ASSESSEE CONTENDS OF THE OBTAINING RATE BEING MUCH LOWER AND FOR WHICH THE L D. AR REFERRED TO PG. 36 OF ITS PAPER- BOOK, WORKING OUT THE AVERAGE COST OF ACQUIS ITION OF SCRAP (UP TO 29.11.1990), INCLUDING OPENING STOCK OF 269.276 MT, AT RS. 4363/ - PMT. ITA. NO. 535/COCH./2008 9 10. EVEN AS THIS ISSUE, WE OBSERVE, DOES NOT FIND A NY MENTION IN THE ORDERS OF THE AUTHORITIES BELOW, NOR SPECIFICALLY AGITATED BY THE ASSESSEE BEFORE THEM, WE CONSIDER THE SAME AS ADMISSIBLE. THIS IS FOR THE REASON THAT THE ISSUE IS ONE OF PRINCIPLE, AND INTEGRAL TO THE PRINCIPAL ADDITION, WITH THE RELEVA NT FACTS BEING ON RECORD. THE ASSESSEES CONTENTION HAS MERIT INASMUCH AS, WHETHE R ACCOUNTED OR UNACCOUNTED, THE SAME STANDS PURCHASED FROM THE OPEN MARKET AND, THU S, THE BOOK (ACCOUNTED) RATE OF PURCHASE WOULD BE A GOOD INDICATOR OF THE ACTUAL PU RCHASE RATE. THIS IS SUBJECT TO ONE RIDER, I.E., THAT THE VALUE HAS NOT WITNESSED AN IN CREASE OVER TIME DURING THE YEAR, WHICH RULES AT RS. 5000/- PMT AT OR CLOSE TO THE DA TE TO WHICH THE STOCK TAKING PERTAINS, I.E., 29/11/1190. WE STATE SO AS, FIRSTLY , THE ADDITION IS U/S. 69/69B, SO THAT IT IS THE CURRENT RATE THAT WOULD BE RELEVANT AND, SEC ONDLY, THERE IS NO INDICATION AS TO THE BASIS FOR THE ADOPTED RATE IN THE ORDERS BY THE AUT HORITIES BELOW. THE ASSESSEE TOO, ON HIS PART, HAS NOT RAISED ANY OBJECTION THERETO AT A NY STAGE. WITH REGARD TO THE WORKING, WE OBSERVE, FIRSTLY, A DIFFERENCE IN THE FIGURE OF PURCHASES, I.E., AS PER THE TRADING ACCOUNT ( PB PG. 31 ) AT RS. 237.58 LACS, AND THAT AS FURNISHED BY THE ASSESSEE (RS. 162.67 LACS). FURTHER, THE FREIGHT AND COOLY CHARGE S, BEING A PART OF THE ACQUISITION COST, WOULD ALSO WARRANT INCLUSION; THE BOOK FIGURE S PROVIDING A GOOD MEASURE OF THE ACTUAL COST TOWARD THE SAID COST. ALSO, THERE IS A DIFFERENCE IN THE QUANTITY OF SCRAP PURCHASED; THE ASSESSEES WORKING DEPICTING A FIGUR E OF 3779.231 MT AS AGAINST 3472.673 MT ADOPTED BY THE LD. CIT(A), AND WHICH HA S NOT BEEN OBJECTED TO BY THE ASSESSEE. THE TWO SETS OF FIGURES WOULD BE REQUIRED TO BE RECONCILED AND/OR VETTED. IN THE CIRCUMSTANCES, WE REMIT THIS MATTER BACK TO THE FILE OF THE LD. CIT(A) FOR A CONSIDERATION ON MERITS AND ADJUDICATION PER A SPEA KING ORDER, AFTER PROVIDING AN OPPORTUNITY OF BEING HEARD TO BOTH THE SIDES. WE D ECIDE ACCORDINGLY. 11. THE FIFTH GROUND OF THE ASSESSEES APPEAL PERTA INS TO AN ADJUSTMENT IN RESPECT OF STOCK SOLD TO ENNAR STEELS, ANDHRA PRADESH. THE AS SESSEE CLAIMS THAT THE SALES TO THE SAID PARTY WERE MADE DIRECTLY WITHOUT BRINGING THE RELEVANT STOCK INTO THE STOCKYARD AT CALICUT, SO THAT THE SAME WAS NOT ENTERED ON THE RE CEIPT SIDE OF THE STOCK REGISTER. BEFORE US, LIKE CONTENTIONS WERE RAISED BY EITHER S IDE, WITH THE LD. DR RELYING ON THE ITA. NO. 535/COCH./2008 10 IMPUGNED APPELLATE ORDER, STATING OF THE LD. CIT(A) AS HAVING CONSIDERED THE ISSUE AT LENGTH, ADJUDICATING EACH OF THE ISSUES RAISED BY T HE ASSESSEE BEFORE HIM. 12. WE FIND NO REFERENCE TO THE SAID CLAIM BY THE A SSESSEE EITHER IN THE ASSESSMENT ORDER; THE REMAND REPORT DATED 18.4.1995, OR THE IM PUGNED APPELLATE ORDER, EVEN AS IT STANDS ALLOWED EXTENSIVE OPPORTUNITY TO STATE ITS C ASE AND, IN FACT, HAS RAISED SEVERAL CONTENTIONS, INCLUDING IDENTICAL TO THE ONE UNDER R EFERENCE (I.E., WITH REFERENCE TO OTHER PARTIES), WHICH STAND DEALT WITH, LEADING TO VARIOU S ADJUSTMENTS IN THE WORKING OF THE EXCESS STOCK, BY THE AUTHORITIES BELOW. THAT A FOUR TEEN YEAR HIATUS MARKED THE DISPOSAL OF ITS APPEAL BY THE FIRST APPELLATE AUTHORITY, IS ITSELF UNFORTUNATE, WHO, NEVERTHELESS, HAS TAKEN PAINS TO ADDRESS EACH OF THE ISSUES RAISE D BY THE ASSESSEE, SOME OF WHICH APPEAR TO BE BELATEDLY. AGAIN, THERE IS NO CLAIM BY THE ASSESSEE OF ITS RELEVANT CLAIM BEFORE THE AUTHORITIES BELOW HAVING NOT BEEN CONSID ERED BY THEM. AS SUCH, IT IS DIFFICULT TO ENTERTAIN THE ASSESSEES PLEA, BEING W ITH REGARD TO A MATTER OF FACT, AT THIS STAGE, OR CONSIDERING IT AS BEING AGGRIEVED BY THEI R ORDERS. THE SAID CLAIM OUGHT TO HAVE RATHER ARISEN IN THE FIRST INSTANCE, I.E., BEF ORE THE AUTHORISED OFFICER ITSELF, BEING A MATTER OF FACT, AND ONE WHICH COULD BE READILY PROV ED WITH REFERENCE TO THE ASSESSEES BOOKS, WHICH WOULD CONTAIN THE PURCHASE AND SALE OF THE SAME CONSIGNMENT(S) OF STOCK, SOLD TO M/S. ENNAR STEELS IN THE AGGREGATE O F 3967.321 MT, AND OTHER ALLIED AND INCIDENTAL MATERIAL. WE, THEREFORE, FIND NO MERIT I N THE ASSESSEES SAID GROUND AND, ACCORDINGLY, DISMISS IT. 13. VIDE THE SIXTH GROUND, THE ASSESSEE CONTENDS TO HAVE PURCHASED 71 MT OF SCRAP DURING THE RELEVANT YEAR (UP TO THE DATE OF SEARCH) FROM TRAVANCORE METAL INDUSTRIES, KOTTAYAM, WHICH STOOD SUPPLIED DIRECTLY TO M/S. STE EL COMPLEX LTD., I.E., WITHOUT BRINGING THE RELEVANT GOODS TO ITS STOCKYARD AT CAL ICUT, SO THAT THE SAME REMAINS TO BE INCLUDED IN ITS STOCK REGISTER. WE FIND THAT THE SA ID ISSUE STOOD RAISED BY THE ASSESSEE BEFORE THE LD. CIT(A), AND WHO HAS .DEALT WITH THE SAME VIDE PARA 7(F) OF HIS ORDER, GIVING RELIEF TO THE ASSESSEE IN ITS RESPECT AT 62 .036 MT. AS SUCH, FIRSTLY, THE ASSESSEES CLAIM BEFORE US MADE FOR A TOTAL QUANTIT Y OF 71 MT IS FACTUALLY INVALID. ITA. NO. 535/COCH./2008 11 SECONDLY, IT HAS FAILED TO POINT OUT ANY DISCREPANC Y IN THE IMPUGNED ORDER QUA THE BALANCE 8.964 MT (71- 62.03), FOR WHICH RELIEF STAN DS DENIED TO IT BY THE LD. CIT(A). UNDER THE CIRCUMSTANCES, WE, THEREFORE, DECLINE TO INTERFERE WITH THE IMPUGNED ORDER ON THIS GROUND. 14. THE SEVENTH GROUND RELATES TO A SIMILAR CLAIM I N RESPECT OF ANOTHER SUPPLIER, M/S. VISHWANATHAN & COMPANY, MADE FOR A QUANTITY OF 35.960 MT. AGAIN, WE FIND THE ASSESSEE TO HAVE AGITATED THIS ISSUE BEFORE THE LD. CIT(A), WHO ALLOWED IT RELIEF TO THE EXTENT OF 36.37 MT., I.E., AT THE AGGREGATE QUA NTITY OF ALL THE FOUR BILLS (NOS. 1843, 1848, 1850 AND 1853), STATED TO HAVE BEEN OMITTED T O BE INCLUDED IN THE STOCK REGISTER, VIDE PARA 7(A) R/W PARA 8 OF HIS ORDER. AS SUCH, TH E ASSESSEES CLAIM IS FACTUALLY MISLEADING, AND NO CAUSE OF GRIEVANCE ARISES, WITH THE ASSESSEE ALSO FAILING TO SHOW ANY INFIRMITY IN THE IMPUGNED ORDER IN ITS RESPECT. WE, THEREFORE, FIND NO REASON TO INTERFERE WITH THE IMPUGNED ORDER ON THIS GROUND. 15. VIDE ITS EIGHTH GROUND, THE ASSESSEE CONTENDS T HAT ITS DISCLOSED CLOSING STOCK AS ON 31.3.1991. I.E., AT 126.275 MT, IS ONLY OUT OF I TS STOCK WITH IT AS ON 29.11.1990, SO THAT THAT IT OUGHT TO BE ALLOWED CREDIT IN ITS RESP ECT WHILE WORKING OUT THE ADDITION IN RESPECT OF EXCESS STOCK FOUND AT THE TIME OF SEARCH ; THE RELEVANT GROUND READING AS: 8. THE CLOSING STOCK OF 126.275 MT IS DISCLOSED AS ON 31.3.1991 WHICH IS OUT OF STOCK FOUND AS PER THE STOCK VERIFICATION ON 29.11. 1990 AND HENCE CORRESPONDING CREDIT IS TO BE GIVEN FOR THE VALUE OF THAT STOCK I N THE ADDITION TO BE MADE IN EXCESS STOCK FOUND IN THE STOCK VERIFICATION AT THE TIME O F SEARCH. WE ARE UNABLE TO APPRECIATE THE ASSESSEE S CASE, OR THE CAUSE OF GRIEVANCE BEING SOUGHT TO BE PROJECTED BY IT. ONCE A PARTICULAR QUA NTITY OF STOCK IS EITHER FOUND RECORDED IN THE ASSESSEES BOOKS OR, BEING NOT SO, BROUGHT TO TAX, THE SAME WOULD BECOME ITS EXPLAINED STOCK THE SAME, IF NOT SOLD B Y THE YEAR-END, WOULD ONLY FIND REFLECTION IN ITS CLOSING STOCK THEREAT. WHAT ADDIT IONAL CREDIT THE ASSESSEE CLAIMS, WE ARE, THEREFORE, UNABLE TO COMPREHEND. THE IMPUGNED ADDITION, IT NEEDS TO BE REALISED, IS ONLY QUA THE STOCK FOUND IN THE ASSESSEES POSSESSION (582. 602 MT), WHICH COULD NOT BE EXPLAINED BY IT WITH REFERENCE TO ITS BOOKS OF ACCOUNTS OR OTHER RELEVANT ITA. NO. 535/COCH./2008 12 DOCUMENTS. THE ASSESSEE IS FREE TO THEREAFTER INCOR PORATE THE SAME IN ITS REGULAR BOOKS OF ACCOUNTS, WHICH IS DECIDEDLY A PREFERRED OPTION; THE ENTIRE GOODS BEING STOCKED TOGETHER, AND DEALT WITH ALONG WITH THE OTHER ACCOU NTED STOCK, THE TWO ONLY FORMING PART OF THE REGULAR STOCK-IN-TRADE. THE SAME WOULD ONLY BE BY DEBITING THE TRADING ACCOUNT WITH THE VALUE OF THE HITHERTO UNEXPLAINED STOCK, ALSO INCLUDING IT ON THE RECEIPT SIDE OF THE STOCK REGISTER. ANY UNSOLD STOC K AS AT THE YEAR-END, WOULD THUS ONLY BE OUT OF THAT WHICH STANDS DEBITED TO THE TRADING A/C, OR OUT OF THE ACCOUNTED STOCK, WHETHER BY WAY OF REGULAR PURCHASES OR AS `EXCESS STOCK, SO THAT THE VALUE THEREOF WOULD NEED TO BE CREDITED TO THE TRADING A/C AS CLO SING STOCK, SO THAT THE COST OF GOODS DEBITED THERETO IS NETTED TO REFLECT ONLY THA T TOWARD THE GOODS SOLD. AS SUCH, THE QUESTION OF ANY CREDIT QUA ANY STOCK THAT REMAINS UNSOLD AS AT THE YEAR-END D OES NOT ARISE. ON THE OTHER HAND, IF THE ASSESSEE DOES NOT BRING IT INTO ITS REGULAR BOOKS, IT WOULD BE OBLIGED TO PREPARE SEPARATE MEMORANDA ACCO UNT(S) IN ITS RESPECT, TO BE ABLE TO CAPTURE THE PROFIT OR LOSS REALIZED ON ITS SUBSE QUENT TRADING, AS WELL AS ITS STOCK STATUS AS AT THE YEAR-END. IN THIS CASE TOO, NO OCC ASION TO ALLOW ANY CREDIT FOR THE VALUE OF CLOSING STOCK ARISES. THE LD. AR DURING HEARING ALSO COULD NOT IMPRESS UPON US ANY MORE THAN WHAT STANDS UNDERSTOOD AND EXPLAINED BY U S HEREINBEFORE. WE DECIDE ACCORDINGLY, DISMISSING THE ASSESSEES GROUND. 16. THE NEXT AND NINTH GROUND IS IN RESPECT OF SIMI LAR CLAIM, I.E., AS MADE IN THE TRAVANCORE METAL INDUSTRIES, IN RESPECT OF M/S. POP ULAR AUTOMOBILES, MADE FOR A QUANTITY OF 20 MT. THE ASSESSEE, WE FIND STANDS AL READY ALLOWED RELIEF IN RESPECT OF ITS CLAIM QUA THE SAID PARTY BY THE REVENUE IN FULL, AS HELD BY THE LD. CIT(A) ( REFER PARA 7(B) OF HIS ORDER ) QUA WHICH NO INFIRMITY STANDS SHOWN TO US BY THE LD. AR . WE, THEREFORE, FOR THE LIKE REASONS AS STATED IN RESPE CT OF GROUND NOS. 6 & 7, DECLINE TO INTERFERE THEREWITH. WE DECIDE ACCORDINGLY, AND THE ASSESSEES CLAIM FAILS. 17. THE TENTH GROUND IS IN RESPECT OF ADDITION QUA A DIARY SEIZED FROM THE RESIDENTIAL PREMISES OF SHRI V.T. MOHAMMED KUTTY, W HICH REVEALED ADVANCES BY THE ASSESSEE-FIRM TO DIFFERENT SCRAP DEALERS/SUPPLIERS IN THE SUM OF RS. 6.66 LACS. WE FIND ITA. NO. 535/COCH./2008 13 NO REFERENCE THERETO IN THE IMPUGNED ORDER, SO THAT IT IS NOT UNDERSTOOD AS TO HOW THE GROUND AS RAISED ARISES THERE-FROM, FOR IT TO BE MA INTAINABLE BEFORE US. HOWEVER, WE OBSERVE THAT THE ASSESSEE HAD RAISED A GROUND IN TH IS RESPECT BEFORE THE LD. CIT(A) AND, THEREFORE, THE PROPER COURSE FOR IT WOULD BE TO PUR SUE THE SAID AUTHORITY FOR ITS ADJUDICATION. WE DECIDE ACCORDINGLY, AND THE ASSESS EES GROUND IS DISMISSED AS NOT MAINTAINABLE. 18. THE LAST AND ELEVENTH GROUND OF THE ASSESSEES APPEAL WAS NOT PRESSED BY THE LD. AR AT THE TIME OF HEARING AND, THEREFORE, IS DISMIS SED IN LIMINE . HOWEVER, WE MAY ADD THAT IF AT ANY TIME IN FUTURE, ANY ISSUE RELEVA NT TO ANY GROUND IN RELATION TO THE ASSESSEES ASSESSMENT ARISES BEFORE ANY AUTHORITY, INCLUDING THE APPELLATE TRIBUNAL, IT SHALL NOT BE EXCLUDED FROM CONSIDERING THE FACTS IN RELATION TO THIS GROUND INSOFAR AS THEY ARE RELEVANT AND BEAR ON THE MATTER IN ISSUE B EFORE THE SAID AUTHORITY. WE DECIDE ACCORDINGLY. 19. IN THE RESULT, THE ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (N.VIJAYAKUMARAN) (SANJAY ARORA) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 31ST MAY, 2010 NB: ANNEXURE-A FORMS AN INTEGRAL PART OF THIS ORDE R. GJ COPY TO: 1. M/S. KALLIYATH WIRE DISTRIBUTORS, OPP. R.K. MISS ION HIGH SCHOOL, PANNIANKARA, CALICUT. 2. THE ASSISTANT COMMISSIONER OF INCOME TAX, INVEST IGATION CIRCLE-1, CALICUT. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, CALI CUT. . 4. THE COMMISSIONER OF INCOME-TAX, CALICUT. 5. D.R./I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) ITA. NO. 535/COCH./2008 14 ANNEXURE-A (QTY. IN MT, AMT. IN RS.) TRADING A/C - SCRAP QTY. AMOU NT QTY. AMOUNT TO OPG. BALANCE BY SALES TO PURCHASES BY CLG. STOCK TO UNACCOUNTED PURCHASES TRADING A/C STEEL ROLLS QTY. AMOUNT QTY. AMOUNT TO OPG. BALANCE BY SALES TO PURCHASES BY CLG. STOCK TO UNACCOUNTED PURCHASES TRADING A/C STEEL RODS QTY. AMOUNT QTY. AMOUNT TO OPG. BALANCE BY SALES TO PURCHASES BY CLG. STOCK TO UNACCOUNTED PURCHASES TRADING A/C G.I. WIRE QTY. AMOUNT QTY. AMOUNT TO OPG. BALANCE BY SALES TO PURCHASES BY CLG. STOCK TO UNACCOUNTED PURCHASES TRADING A/C - SHUTTER QTY. AMOUNT QTY. AMOUNT TO OPG. BALANCE BY SALES TO PURCHASES BY CLG. STOCK TO UNACCOUNTED PURCHASES ITA. NO. 535/COCH./2008 15