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TMI Blog2004 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ade entries on a date when the actual payment was not made, the payment having been made by post-dated cheques, the books of account maintained by it were clearly unreliable and, therefore, the Income-tax Officer was justified in invoking the provisos to sub-section (1) and subsection (2) of section 145 – assessee’s appeal dismissed - - - - - Dated:- 3-8-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following two questions of law under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion to this court: "1. Whether, on the facts and circumstances of the case, the proviso to sub-section (1) of section 145 or sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . These cheques were encashed either by the assessee's representative or by one of the partners of the assessee-firm. He, therefore, added the amount of Rs. 75,000 in the assessment order mentioning that there was no stock register and that replies of the karigars who had confirmed the receipts, were identically worded, which showed that the reply was drafted by a common source. The Income-tax Officer held that the book results were not acceptable. He added Rs. 75,000 to the income, as according to him, the cost of the goods was inflated. The assessee filed an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) felt on the facts of the case that cash incentive received should be taken into acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 145 are clearly attracted in the present case. Having heard learned counsel for the parties, we find that the applicant no doubt is maintaining its books of account on the mercantile system and further it has entered the payment to three "karigars" by post-dated cheques which were issued, not on the date of the cheque but on the date when these were handed over. This entry was made in the cash book which obviously was false and as payment is to be recorded when it is actually made even if it is either by way of cash or by way of cheque or draft. In the present case as the applicant had made entries on a date when the actual payment was not made, the payment having been made by post-dated cheques, the books of account maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X
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