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TMI Blog2016 (10) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... puter. Therefore, the sudden booking of huge expenditure in a month's time, that too, after survey operations were carried out, would lead any reasonable and prudent man to an inference that the same was deliberately booked to neutralise the obligation to report additional income of ₹ 15 lakhs over and above the normal income. When expenditure in cash is incurred, receipts/vouchers have got to be maintained accurately and the same will have to be produced for acceptance of the assessing officer. No explanation is forthcoming as to why an expenditure to the tune of ₹ 6 lakhs, has been shown to have been incurred for the first time during the relevant assessment year towards the payment of commission, while similar expenditure was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer of pharmaceuticals, has filed Return in respect of his total income of ₹ 12,24,423/-. However, on 27.02.2008, survey operations were carried out at the business premises of the assessee under Section 133-A of the Income Tax Act. During the course of answering the questionnaire, the assessee offered to return additional income for ₹ 15 lakhs. But however, the total income in respect of which the Return was filed by him, fell short of the said amount. Right at this stage, it will be relevant for us to notice the following from the sworn statement recorded from the assessee during survey operations, by way of answers furnished by the assessee for Question Nos.6 and 16, which have been relied upon by the assessing officer, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the assessee has offered voluntarily ₹ 15 lakhs as income over and above the regular income. But however, he has booked certain expenditure in the immediate aftermath of the survey operations carried on 27.02.2008 and claimed that because of the expenditure thus incurred, the net income has come down, though he did include ₹ 15 lakhs increase in the total income. The assessing officer has discredited this attempt of the assessee and essentially based his reasonings on the following two factors: (i) The expenditure is incurred towards commission by way of cash payments, but however, no receipts/vouchers, etc. have been produced in support of the said claim. (ii) Similar expenditure was not booked by the assessee in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Hence, the Revenue went before the Income Tax Appellate Tribunal, which by its order, dated 12.02.2014, allowed the appeal of the Revenue. It is against this order that the present appeal is directed. 7. Heard Shri.N.Devanathan, learned counsel for the appellant/assessee and Shri.T.Ravikumar, learned Senior Standing Counsel appearing for the respondent- Income Tax Department. 8. There is no gain-saying that during the survey operations, the assessee has given his statement in the form of questions and answers. In relation to Question No.6, calling for the details of the account books maintained, the assessee has said the following, which would be relevant for our inquiry: .... For expenses incurred I don't have any kind o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2008-2009, the assessee has reported the gross turnover of ₹ 9,71,88,656/-. It is no doubt true that there was consistently considerable quantum of increase in the gross turnover and consequently, the gross profit and net profit had been reflected by the assessee by incremental increase each year. Hence, in those circumstances, the assessing officer has reversed some of the expenditure said to have been incurred in cash, for the relevant assessment year, and added it to the taxable income. 12. The order passed by the assessing officer has contained adequate reasons as to why he has discredited the expenditure incurred in cash. When the expenditure has been booked in the post-27.2.2008 period, upto 31.03.2008, it has not inspire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt/assessee submitted that the finding of the Income Tax Appellate Tribunal is patently perverse and hence it calls for interference at our hands. 13. Perversity, as is too well known, is a factor which vitiates any exercise, legal or otherwise, determinative of the rights and obligations of the parties. Broadly understood, the concept of perversity, would mean all the facts possibly leading to one inference/conclusion, and if an opposite inference/conclusion is drawn, then any such exercise can be called as a result of perversity. Further, upon considering the same material, if no reasonable body of men would have reached such a conclusion, then the concept of perversity would spring up. 14. In the instant case, the statement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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