9911796707
TMI Blog1977 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ancy is said to have been noticed with reference to the gate passes issued by the assessee firm, in respect of the printed cloth. The ITO found from the file of M/s. Chandra Printing Mills that the assessee did not bill for the above discrepant quantity. He observed that there were mis-calculations and errors in making the bills which resulted in excess charging in respect of 26,880 metres. He, therefore, held that in fact, there was omission to the tune of 10,060 rupees and added the same to the assessee s income, unders.27(1)(c)of the IT Act, 1961. The assessee replied by letter dated 5th Oct., 1974 and the material portion of the said reply reads as follows: "We beg to submit that we have not concealed the income or submitted in accur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reprocessing in which case another gate pass is issued while delivering the reprocessed cloth. The reprocessed cloth is not again billed, because the work done is only a rectification of the original work. The workmen inform the clerks of the cloth printed in relation to the delivery note. We were under the impression that by this system there would not be any omission in billing. However we now learnt that this system is not fool-proof". The ITO rejected the assessee s explanation and held that the assessee had furnished inaccurate particulars of income. He imposed penalty as aforesaid. On appeal, the AAC of Income-tax deleted the penalty for the reasons mentioned by her in paragraph 8 of the order dated 9th Dec.,1975. Aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills. It is also on record that there had been no excess billing. Taking an overall view of the matter, we are of the opinion that the accounts of the assessee cannot be said to be perfect and this is only a case of defective accounts which warrant an estimate of the income. Actually, the addition that has been made was only in respect of the omitted items for which bills were admittedly not issued. It is not the case of the Revenue that the assessee had factually collected the cooly charges from M/s Chandra Printing Mills and omitted to issue the bills therefor. Only if M/s. Chandra Printing Mills had paid the cooly charges to the assessee and the cooly charges were not accounted for by the assessee in its books, a charge of concealment ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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