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TMI Blog2004 (4) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ancy - Assessee’s appeal dismissed - - - - - Dated:- 30-4-2004 - Judge(s) : A. M. SAPRE., ASHOK KUMAR TIWARI. JUDGMENT The judgment of the court was delivered by A. M. SAPRE J. -This is a reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the assessee to answer the following question of law: "Whether, on the facts and circumstances of the case, there is any legal material for the conclusion of the Tribunal that there is concealment of sale to the extent of Rs. 1,40,340?" The issue arises for the assessment year 1980-81. The assessee is a dealer in kerosene oil as also other petroleum products such as furnace oil, light diesel oil, etc. In the course of the assessment proceedings, the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, learned senior counsel, with Shri S. Gupta, learned counsel for the non-applicant. Having heard learned counsel for the parties and having perused the statement of case, we are of the opinion that the question referred to this court has to be answered against the assessee and in favour of the Revenue. In other words, our answer to the question is that the Tribunal was right in holding that there is a concealment of sale to the extent of Rs. 1,40,340. In our opinion, it is useful to quote verbatim, the explanation of the assessee on this issue which they gave before the Assessing Officer as to how and on what basis the alleged short fall in the accounts to the extent of Rs. 1,40,340 has occurred. Indeed, this explanation of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,40,340 is made on account of suppressed sales." In our opinion, the system of accountancy followed by the assessee was admittedly faulty. In other words, it was not as per the norms applicable for maintaining the cash-book. Even according to the assessee the sale made pursuant to sale voucher was not reflected on day-to-day basis in the cash-book. In the system of accountancy, in the cash-book, the debit and credit entry must always co-relate with each other to work out the balance for being carried forward to the next day. The cash-book must reflect the true picture of each and every sale transaction on day-to-day basis and the moment it is affected. When even according to the assessee, the sale had taken place and voucher is issued th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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