TMI Blog2002 (7) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... nance of stock register, coupled with the fact that unaccounted sales were detected during the course of search, in our opinion, is a relevant factor to sustain the view of the Assessing Officer. We do not find any legal infirmity in the view taken by the Tribunal that the disclosures/surrender of Rs. 5 lakhs by the assessee at the time of search, as its unaccounted sales, constitutes sufficient material for the Assessing Officer to base his satisfaction that the books of account of the assessee are not correct and complete. In so far as the estimation of the sales/ gross profit rate is concerned, it being a best judgment assessment, based on past years results cannot be said to be arbitrary. - - - - - Dated:- 9-7-2002 - Judge(s) : D. K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 -------- 5,00,000 -------- The said amount was credited to the profit and loss account and a total income of Rs. 3,80,760 was returned for the assessment year 1991-92. During the course of assessment proceedings for the relevant assessment year (previous year comprising of 6 1/2months, i.e. up to October 15, 1990), the Assessing Officer, invoking a proviso to section 145(1) of the Act, rejected the books of account maintained by the assessee and estimated the turnover of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent reasons and it is only an addition of Rs. 15,000, which is sustained by the learned Commissioner of Income-tax (Appeals) on account of rejection of account books. Thus the significant aspect is whether addition of Rs. 1,20,000 was called for. In this connection, we would like to repeat that a surrender of Rs. 5,00,000 was made by the assessee during the course of search conducted on November 28, 1990, after the close of the assessee's previous year. This surrender was on account of cash found during the course of search, sundry debtors which were not included in the account books and investments made in household goods. By crediting an amount of Rs. 5,00,000 to the profit and loss account, the assessee has reduced the amount of surre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel for the assessee. Section 145(2) of the Act empowers the Assessing Officer to make a best judgment assessment when he is not satisfied about the correctness or completeness of the accounts of the assessee. It is not possible to categorise various types of defects which may render rejection of books of account of an assessee on the ground that the accounts are not complete or correct. Each case has to be considered on its own peculiar facts, having regard to the nature of business. Though it is true that the absence of stock register, in a given situation, may not per se lead to an inference that the accounts are incomplete or false the absence of such a register, coupled with other factor, like fall in profits, etc., may lead t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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