New Adarsh Industries v. Commissioner of Income-tax Amritsar and another
[Citation -2020-LL-0117-101]
Citation | 2020-LL-0117-101 |
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Appellant Name | New Adarsh Industries |
Respondent Name | Commissioner of Income-tax Amritsar and another |
Court | HIGH COURT OF PUNJAB & HARYANA |
Relevant Act | Income-tax |
Date of Order | 17/01/2020 |
Assessment Year | 1988-89 |
Judgment | View Judgment |
Keyword Tags | business of manufacturing and sale • independent evidence • evidence on record • closing balance • stock register • excess stock • sales tax • unaccounted sales |
Bot Summary: | This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 against the order dated 21.2.2000 of the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar passed in Income Tax Appeal No. 849/1993 relating to Assessment year 1988-89 reversing the order of the Commissioner of Income Tax and maintaining the order of the Assessing Officer. Brief facts of the case are that the appellant was engaged in business of manufacturing and sale of conduit pipes and had filed its return of income relating to assessment year 1988-89 on 26.8.1988 disclosing an income of Rs.28,460/-. The Assessing Officer concluded that these were sales made outside the book of accounts and thereby added a sum of Rs. 2,44,242/-. The appellant filed an appeal which was allowed by the Commissioner primarily on the ground that even though this discrepancy was pointed out by the Assessing Officer yet the final sales, figures, stock and the book of accounts as on 31.3.1988 were accepted by ANURADHA 2020.01.23 17:25 I attest to the accuracy and integrity of this document ITA-115-2000 3 the Revenue authority which meant that whatever excess stock there may have been was sold during the year, was reflected in the books of accounts. Did not consider this aspect but went on to hold that the appellant had not been able to explain the discrepancies which had occurred in the value of the stock represented in the hypothication register and the stock at the premises and consequently, set aside the order of the Commissioner restoring the order of the Assessing Officer. Once the closing balance and the final books of accounts have been accepted it is clear that whatever goods were produced during the year were sold and thus the discrepancies which may existed on two days in an year would not be determinative. The appeal is allowed and the impugned order dated 21.2.2000 is set aside. |