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TMI Blog2018 (7) TMI 1817X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Corporation. There is no restriction with respect to the price for which liquor has to be sold by a person holding licence to run Bars under the Abkari Act. The price being variable and the suppression being the actual price for which the liquor was sold; the entire suppression is income. The assessee having filed its return claiming deduction for the entire expenditure incurred, there is no warrant for making further deduction for expenditure or computing the profit for the suppressed sales turnover detected on survey. What was detected on survey was added on as income and the assessment was completed, which cannot be faulted. - Decided against assessee. - I.T Appeal No. 226 of 2013 And 229 of 2013 - - - Dated:- 10-7-2018 - MR. K. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gation levelled of other purchases. 4. The facts in the cited decision, in an application compelling reference is not clear. What little is discernible is that the assessee was alleged to have moved finished goods from its manufacturing unit to its godown without disclosing it in the books of accounts and sold the same. The entire sale price of the goods was taken as the income received. The High Court found that if at all there was a sales suppression, the taxable income could be only to the extent of the estimated profit embedded in the sale. It was also found that having detected no investment outside the books of accounts, only the net profit of the sale suppressed can be taken. 5. We are not apprised of the exact business which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the accounts while a far higher price was disclosed from the material recovered on survey. This does not require any further investment on purchase and is essentially an allegation of more gross profit having been obtained than that returned. 7. It was on the above basis that the sales turnover of IMFL was estimated at ₹ 2,38,77,112/-. In addition to that disclosed in the return of income, which was only ₹ 1,94,47,035/-. The difference being ₹ 44,30,077/- was taken as income. This is the additional income received as profit on sales, over and above that seen from the accounts. We need not labour on the figures in the next year; which alone differ and the principle on which estimation was made is similar. The mere fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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