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TMI Blog1978 (1) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... not with the return. The Income-tax Officer perused the return and stated that at page 2 of the return in the case relating to the list of statements and certificates attached, it has been mentioned by the assessee that statement of accounts containing 17 pages and Vakalatnama was attached along with the filing of form No. 12 along with the said return. Accordingly, the Income-tax Officer came to the conclusion that form No.12 was not filed at all. The assessee filed form No. 12 along with the return subsequently on 19th Nov., 1976 which was not in time and consequently the Income-tax Officer did not allow continuation of registration to the assessee and treated the firm as URF. The assessee came in appeal before the Appellate Assistant Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that form No.12 was handed over to the Income-tax Officer, A Ward, on 29th July, 1974 along with the return. As the form no. 12 has been filed, the continuation of registration should be allowed. The Departmental Representative took preliminary objection that the assessee cannot take the plea of registration in the quantum appeal and this ground of the assessee is not entertainable. On merits the Departmental Representative urged that no evidence was produced that the assessee filed form No.12 along with the return, and therefore, the continuation of registration was rightly disallowed. 3. The preliminary objection taken by the Department is not sustainable. s. 246(c) of the Income-tax Act, 1961 is quite specific on this issue and the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer on 29th July, 1974. Further the assessee s counsel as well as the partners have filed affidavit before the Appellate Assistant Commissioner and the counsel has categorically affirmed that Form. No.12 was handed over to the Income-tax Officer along with the returns on 29th July,1974. If these facts are taken into consideration, there is no doubt that the assessee filed the Form No. 12 on 29th July,1974. Even if there is a doubt, the benefit of doubt must go to the assessee because the return and the other documents handed over to the Income-tax Officer on 29th July,1974 are available in the record. Consequently, it is taken that Form No. 12 was filed by the assessee was entitled for continuation of registration. The Income-tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and following the decision in 83 ITR 363, the excess realisation of sales tax should not be subject to tax. Consequently, the addition of Rs. 1,181 is deleted. 6. The next objection of the assessee is about the addition of Rs. 3,000 in the salary account. The assessee during the year under appeal claimed the salary of Rs. 18,225 as against Rs. 9,860 claimed in the immediately proceeding year. The Income-tax Officer found that the claim of the assessee is excessive and he therefore, disallowed Rs. 5,000 which was restricted to Rs. 3,000 on appeal. The assessee pleaded that its turnover during the year under appeal was for 7.21 lakhs as against 4.18 lakhs in the immediately proceeding year and therefore, the claim of salary should be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the addition of Rs. 3,500 and Rs. 9,500 respectively in diesel and mobil account. The assessee disclosed the transportation charges receipt for petrol at Rs. 44,484 and claimed expenses at Rs 33,526. Thus the net income was shown at Rs. 10,958. The assessee in mobil account disclosed the total turnover of Rs. 1,41,752 and the gross profit thereon at Rs 14,674 which worked out to 10.04 per cent. The Income-tax Officer found that the expenses claimed by the assessee in petrol and diesel account were not fully vouched. He also found that the G.P. disclosed in mobil account was low and he, therefore, added Rs. 3,500 in petrol and diesel account and Rs. 12,000 in mobil oil account. On appeal the Appellate Assistant Commissioner confirmed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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