9911796707
TMI Blog2009 (10) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Appellate Tribunal, Bangalore Bench B (hereinafter called as the Tribunal for short) in I. T. A. No. 1458/Bang/2003 for the assessment year 2000-01. The Tribunal has allowed the appeal and set aside the order passed by the Commissioner of Income- tax (Appeals), Hubli (hereinafter called as the appellate authority for short) in I. T. A. No. 18/HBL/CIT(A)/HBL/2003-04 dated September 30, 2003 confirming the order of assessment dated March 26, 2003. 2. The respondent-firm filed its return of income for the assessment year 2000-01 on October 30, 2007 declaring the income of Rs. 1,95,400 and notice was issued under section 143(2) of the Act, 1961 (hereinafter called as the Act for short) on April 9, 2001, and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sources. Including this sum, the net result shown comprised of Rs. 1,91,040 over the income offered as per survey of Rs. 11,50,000, the trading results would be loss of Rs.9,59,000. The firm had not incurred loss on any of the earlier assessing years and on close scrutiny of the books of account, the Assessing Officer found that total income of the assessee-firm was computed as under : Rs. Rs. Income returned 1,95,400 Add : 1. For low G.P. declared (para 3) 3,72,080 2. Excess quantity obtained and sold (para 4) 2,69,050 3. Under job work (para 5) 37,080 4. Loss disallowed in respect of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less: Tax as per 143(1) 75,229 Payable 6,23,972 Assessed under section 143(3). Issue demand notice and challan accordingly. Penalty proceedings under section 271(1)(c) initiated separately. 3. Being aggrieved by the said assessment order, the assessee preferred an appeal before the appellate authority in I. T. A. No. 18/HBL/CIT(A)/HBL/ 2003-04 and the appellate authority by order datedSeptember 30, 2003dismissed the appeal and confirmed the order of assessment. Being aggrieved by the order passed by the appellate authority datedSeptember 30, 2003, the assessee preferred appeal before the Appellate Tribunal and the Tribunal by order datedMay 25, 2005, allowed the appeal deleting the additions made by the Assessing Officer. Being aggrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,02,420 added to the total income of the assessee which was found by the Assessing Officer that purchase and sales from sister concerns M/s. New Swastik Flour Mills, M/s. Swastik Poultry Feeds and one other had taken place and only one bill, used in three cases datedMarch 31, 2001which clearly indicated that it was mere adjustment entry in order to avoid tax ? (v) Whether the Tribunal was correct in holding that if the value of the closing stock is increased then the Assessing Officer had to reduce the gross profit in the next year and therefore addition of Rs. 63,999 the difference in valuation of closing stock could not be added with- out basing such finding on any cogent reason and consequently recorded a perverse finding ? (vi) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng authority had added income of Rs. 10,34,499 which is less than the amount offered by the partner of the assessee himself. Therefore, the very basis upon which the Tri- bunal has proceeded to consider the appeal is baseless and contrary to material on record, as the Tribunal has proceeded on the basis that the books of account had been maintained in accordance with law and there- fore, the order of the Tribunal cannot be sustained and all questions of law have to be answered in favour of the Revenue and the order passed by the Tribunal is liable to be set aside. 7. On the other hand, the learned counsel appearing for the respondent- assessee submitted that the assessee would not have filed the appeal if he had offered to include incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated by the partner of the assessee-firm on oath and entries as shown in the return was not reflected in the account books and were not entered in the record of transactions. Therefore, it is clear that the very basis on which the Tribunal has proceeded on the pre- sumption that the assessee had maintained all the books of account including the stock book of raw materials and finished products and other books of account and that the return entries made in the return were based upon the account books produced is baseless and the finding arrived on such presumption cannot at all be sustained in the eyes of law as the finding of the Tribunal is based upon the presumption and therefore contrary to material on record and perverse and arbitrar ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
