2013 (7) TMI 995

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..... This appeal by the assessee-Sidhartha Woollen Mills relates to block period 1st April, 1985 to 16th November, 1995 and arises out of order of the Income Tax Appellate Tribunal dated 31st December, 1999 in IT (SS) A No.33/Del/96. 2. The appeal was admitted vide order dated 9th May, 2001 and the following substantial question of law was framed:- Whether the Tribunal's conclusion .....

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..... be restricted to ₹ 1,19,838/- by accounting for excess expenditure over income. The Assessing Officer did not accept the said contention observing that both receipts and expenditure had remained unrecorded. After examining nature of the expenditure, he held that the expenses represented money taken out of circulation, i.e., for payment to partners, payment of wages/ladies payment, busi .....

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..... as disclosed by the assessee shows and establishes that the money was taken out of circulation. In other words, it was used for different purposes and it was not used for the business purpose earning unaccounted sales/receipts. It has been rightly observed that it was for the appellant to give full details and particulars regarding nature and character of expenditure, why and for what purpose it w .....

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..... nsactions. This was done on the basis of estimation or guess work in the absence of any evidence giving benefit of doubt and advantage to the appellant-assessee. The balance amount of ₹ 4,40,700/- , the tribunal has held was spending by the appellant-assessee and had been withdrawn or used for non-business purposes. Accordingly, this figure of ₹ 4,40,698/- should be added as disclosed .....

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..... d. 7. In view of the aforesaid position, we do not think that the findings of facts recorded by the tribunal can be categorized as perverse and justify interference or reversal in this appeal under Section 260A of the Act. The question of law recorded above is accordingly answered against the appellant-assessee and in favour of the Revenue. The appeal is dismissed. No costs. - .....

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