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TMI Blog1977 (7) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... v., 1976. The Inspecting Officer found that the assessee had purchased a tyre for Rs. 251.45 from Madras Rubber Factory, Cuttack by invoice No. 57422 dt. 7th Nov., 1973. But the said purchase was not reflected in the purchase account. The fraud report was confronted to the assessee. On the first occasion the assessee explained that due to inadvertance necessary entry in the purchase account could not be made. But subsequently, it pleaded that a truck owner named Paramananda Sharma had purchased a tyre from Madras Rubber Factory Cuttack which was found to be defective. Therefore, he returned the defective tyre and brought a good one. This transaction was done through the assessee. So, although to all appearances the transaction was a purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of Rs. 251.45, in the absence any other defect in the books of accounts or any other suppression, the enhancement at best be limited to Rs. 251.45. The Addl. State Representative supported the assessment. 5. It is an undisputed fact that the assessee maintained purchase, sale and other accounts in detail. No defect was found therein. Except the instance in hand, no other purchase or sale suppression was noticed. 6. It was, however, noticed by an Inspection Officer on 14th Nov., 1975 that the assessee was in possession of an invoice dt. 7th Nov., 1973 for having purchased a tyre for the value of Rs. 251.45 from Madras Rubber Factory, Cuttack against a 'D' form. The purchase was not reflected in the purchase account. At the first ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubt about the veracity of the contention, then Sri Sharma would be called at once and produced before your honour for clarification of the doubts." The AO did not pass any specific order on the above prayer by which, obviously, the assessee wanted to substantiate its plea. In view of the above it would not be improper or unjustified to remand the case to the AO so as to summon Shri Sharma for the purpose of examination by the assessee. But this procedure would be delatory and the learned Tax Practitioner did not press for the same. On the other hand, he seems to have pressed for his alternative argument to limit the enhancement to the above alleged suppression. In the facts and circumstances of this case, the contention of the learned Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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