9911796707
TMI Blog2012 (4) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... Dewan, learned Sr. DR and Shri R.N. Gupta, learned counsel for the assessee. The crux of arguments on behalf of the revenue is in support to the assessment order whereas the learned counsel for the assessee defended the impugned order. 3. We have considered the rival submissions of both the sides and perused the material available on the file. The facts, in brief, are that the assessee deals in sale of Indian made foreign liquor (hereinafter in short IMFL) and Beer in Balaghat, Bhopal and Raisen districts. The assessee during the year showed sales at ₹ 16,94,41,082/- and net profit of ₹ 24,29,453/- before allowing salary to the partners. The Assessing Officer asked the assessee to furnish the details of gross profit and net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock of the goods dealt with by the appellant. The books of accounts have been regularly maintained for the business carried on by the appellant. These books were duly audited and the audit report was furnished along with the return. The Assessing Officer had not pointed out any discrepancy in the quantitative details of purchase or sale effected by the appellant. The cost of goods i.e. purchase price paid by the appellant stand duly accepted by the Assessing Officer with no adverse comments thereon. The appellant company purchased the liquor based on permits granted by the Excise Department. The Assessing Officer had also not pointed out any defect, deficiency or infirmity in the expenses debited to the Profit Loss Acccount. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be noted that absence of cash memo in a given situation like liquor trade may not per se lead to an inference that the accounts are incorrect or incomplete. Here in the case of appellant, the Assessing Officer had not pointed out any defect or deficiency in the books of accounts and ,therefore, there was no sufficient ground with the Assessing Officer for invoking provisions u/s 145(3) of the I.T. Act. Since provisions of section 145(3) of the I.T. Act are not applicable in this case and the books of accounts have not been validly rejected, the Assessing Officer was not justified in estimating the sales at a higher figure and applying a higher net profit than declared by the appellant. 4. If the aforesaid conclusion drawn in the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee and the books were regularly maintained which were duly audited and verified and the same were duly furnished along with the return. Even otherwise, no discrepancy in any manner in quantitative details were found by the Assessing Officer. The cost of goods i.e. purchase price, paid by the assessee, was duly accepted with no adverse comment and the liquor was purchased on the basis of the permit granted by the Excise Department. Normally, in the retail shop of liquor, cash sale is made. However, the sales effected were duly taken into sales account. There is no evidence on record to prove that either the sales were under recorded. There is a further finding that the net profit of 1.77% was reasonable, considering the prevailing rates ..... X X X X Extracts X X X X X X X X Extracts X X X X
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