9911796707
TMI Blog1988 (9) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... rtly stated hereinafter are, that the assessee carried on business of printing, publishing and selling newspapers and periodicals known as Daily Basumati, Weekly Basumati and also some other periodicals. For the purpose of its business, the assessee-company purchased paper, ink and other miscellaneous materials. For the assessment year 1964-65, the assessee-company filed a return on October 20, 1964, disclosing a loss of Rs. 1,79,064. The Income-tax Officer rejected the book result of the assessee and completed the assessment on a total income of Rs. 89,085. The Income-tax Officer felt that the assessee must have inflated its purchases of paper and miscellaneous materials and disallowed Rs. 1,50,000 on an estimate from the purchases account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons given by the Income-tax Officer in the assessment order for disallowing Rs. 1,50,000 from the purchase account towards possible inflation of purchases and for adding Rs. 1,00,000 in the trading account towards possible suppression of sales. It was only on estimate that the Income-tax Officer made the addition towards possible suppression of sales and disallowance towards possible inflation of purchases. We do not think that any inference of fraud or gross or wilful neglect on the part of the assessee could be drawn where additions towards possible suppression of sales or disallowances towards possible inflation of purchases were made in the trading account by the Income-tax Officer on mere estimate. By merely showing that the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is not necessary for us to go into the merits of the case regarding the validity, of the order of imposition of penalty on the assessee. It may be mentioned that none appeared for the assessee before the Tribunal when the Tribunal disposed of the appeal against the penalty. Having regard to the facts and circumstances of this case as aforesaid, the order of assessment having been set aside, to which our attention has been drawn by the Revenue, it is not necessary for us to go into the merits and to decide the validity of imposition of the penalty in this case. If, in the fresh assessment to be made in terms of the directions of the Commissioner of Income-tax (Appeals), the Income-tax Officer detects any concealment of income or parti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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