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TMI Blog1981 (10) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. ITA No. 689 (Mds)/80 deals with the question of registration while the ITA No. 690 (Mds)/80 deals with the order of the first appellate authority in the quantum appeal. Since the facts are inter-dependent they are dealt with together. 2. The assessee is a firm. The ITO noticed certain discrepancies between the figures of sales as furnished by the assessee and the figures recorded as purchases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is further urged that there is no reason why the assessee should adopt a system different from the purchaser. We find that the ITO proceeded on the basis that there was suppression of sales. The matter was to be remitted because there was prima facie material to suggest that the difference was due to the method of accounting. It is certainly open to the ITO while remaking the assessment to consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ually. Since all were adult partners he did not find the objection valid. In the appeal before us the grounds of appeal confined the objection to the ground of alleged non-division of unaccounted profits. We have found that the assessee had, prima facie, explained the variation between the sales shown by the assessee to Associated Cement Co. and the purchases as per their books, as due to the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be entitled to such unaccounted profits as against the provision in the deed wherein six partners were eligible for the share of profits in stipulated ratios. Similarly, the Allahabad High Court in case of Krishna Gopal and Bros. vs. CIT 1976 CTR (All) 65 : (1977)110 ITR 378 (All) was dealing with a case where it was found that an admitted income of the firm was not divided between the partners ..... X X X X Extracts X X X X X X X X Extracts X X X X
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