9911796707
TMI Blog1980 (4) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... about Rs. 33,000 had not been recorded in the books. Such view was taken by the ITO on the basis of the findings of the Commercial Taxes Authorities, who seized the account books of the assessee alongwith some other papers. The ITO estimated the sales at Rs. 11,00,000 and profit was computed applying the gross profit was computed applying the gross profit rate of 9 per cent. This resulted into an addition of Rs. 24,000. On appeal against the assessment order, the AAC concurred with ITO that the account books were not reliable and certain purchases and sales had been carried outside the books. The AAC, however, estimated the sales outside the books at Rs. 66,000 and computed the gross profits at Rs. 85,680 as against the gross profits of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stimated the sales at Rs. 11,00,000 and he having applied the rate of 9 per cent, computed the gross profit at Rs. 99,000. On appeal, the AAC reduced the sales to 10,66,000 (Sales of Rs. 10,00,000 as per the books and sales of Rs. 66,000 outside the books), he applied gross profit rate of 8 per cent on the sales of Rs. 10,00,000 and worked out the profits on such sales at Rs. 80,400. On the outside sales also estimated at Rs. 66,000 gross profit rate of 8 per cent was applied giving rise to the additional profits of Rs. 5,280. Thus, the AAC worked out the gross profits at Rs. 85,680. The question is whether there is any positive evidence on record to show that the assessee effected the sales outside the books to the tune of Rs. 66,000 and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee effected sales of Rs. 16,103 and Rs. 9,013 outside the books. The argument of Shri Pandey is that as compared to the last year, the assessee declared no sales for the year under appeal and that goes to show that the sales were not effected outside the books. His argument is that whereas some purchases could not be recorded by virtue of mistake, the sales had been recorded in entirety. The main issue before us is whether the assessee effected sales outside the books and, if so, whether the AAC was justified in estimating the sales outside the books at Rs. 66,000. The is no positive evidence on record before us that the assessee effected sales outside the books and that such sales were to the books and that such sales were to the exte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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