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TMI Blog2002 (2) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... filed returns of income declaring therein income of Rs. 3,26,490 and Rs. 3,52,405 respectively. Both the returns were duly accompanied with audited accounts. The Assessing Officer observed that both the assessees had not maintained sale vouchers though details of sales and the rate at which liquor was sold were recorded in the stock registers. He further observed that sale rate of country liquor, rum and gin was less than the incidence of purchase price resulting in gross loss of Rs. 47,72,667 and Rs. 68,24,678 respectively and net loss of Rs. 53,09,886 and Rs. 72,64,449 respectively. On the other hand, the Assessing Officer observed that both the assessees had shown substantial income in respect of IMFL at the net profit rate of 28 per cent and 28.22 per cent respectively. The Assessing Officer, therefore, observed that book results were liable to be rejected in respect of sales of country liquor, rum and gin on account of the reason that the assessees had not maintained vouchers for the same. However, both the assessees had explained vide their letters dated 9-6-1994, 12-1-1995, 14-1-1995 and 16-1-1995 that they had maintained complete books of account duly supported by stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h item is noted on the stock register itself. At the time of hearing, it has been ascertained that whereas the minimum price has been fixed for sale of country liquor, rum and gin, no such minimum prices have been fixed in respect of other sales. The assessee also claims to have sold country liquor, rum and gin at much higher prices than the minimum price fixed in respect of country liquor, rum and gin. 19. It is also observed that there is no evidence brought on record to show that the assessee has charged sale price in excess of price as noted in the stock register. Under these circumstances, even if cash vouchers had been prepared by the assessee indicating the price charged as shown in the stock register the same should not have helped in disproving such cash bills. Of course, there is no dispute with regard to quantitative details as purchased and sold by the assessee. 20. It is understood that the price to be charged has to be reflected on the Notice Board at each and every sale outlet. If any sale outlet is not displaying such sale price or is charging more than the price displayed, it is liable for penalty under the Excise Act, but no penalty whatsoever appears to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the purchases, the entries in the house chest account were suspicious and part of the sale proceeds were suppressed and, therefore, action of the Assessing Officer in rejecting the book results was upheld. She therefore, submitted that orders of the CIT(A) be set aside and those of the Assessing Officer restored. 5. The learned Counsel for the assessees, Shri Sudhir Sehgal, on the other hand, strongly relied on the orders of the CIT(A). He reiterated the submissions, which were made before the lower authorities. He submitted that the assessees had maintained complete books of account and the Assessing Officer had not pointed out any defects in these. He submitted that accounts of the assessees were also subjected to audit. The assessees had also maintained stock registers wherein apart from day-to-day stock tally, the assessees had also indicated rates at which sales of country liquor, gin and rum were made. He further submitted that the judgments relied on by the learned D.R. were distinguishable on facts and, therefore, ratio of those judgments was not applicable to the facts of the present cases. He further submitted that the Assessing Officer had not pointed out any comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essees could not be properly deduced from the books of account maintained. Similarly, in the case of Royal Medical Hall, cited ( supra ), the Andhra Pradesh High Court has held that action of the Assessing Officer in rejecting the book results is to be seen on the basis of relevant material. It may be mentioned that the facts before the Andhra Pradesh High Court were that the assessee had maintained a combined trading account in respect of both wholesale and retail sales, purchases and sales though vouched did not give full details of the quantity sold and there were instances where the same medicines were sold on the same day at different rates and no explanation for the same was forthcoming and the assessee had not maintained stock register. Thus the judgment of Andhra Pradesh High Court was given in the light of facts and circumstances of that case and the same will not be applicable to the facts of the present cases where the only defect pointed out by the Assessing Officer is non-maintenance of sale vouchers. In the case of Abdul Aziz Sahib, cited ( supra ), the facts of the case before the Madras High Court were that apart from the fact that the assessee had not maintaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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