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2010 (10) TMI 848 - HC - Income TaxShortage of stock - Tribunal held that the stock of rectified spirit of 33,980 litres worth Rs.16,00,000/- missing in the premises of the assessee as directed by the search party which was included in the books of account's cannot be treated as the income of the assessee? - Held that:- In the light of physical verification of the stock by the search party in the presence of responsible and knowledgable officials, which was confirmed by the letter of the Executive Director later, would only go to show that after due deliberations the explanation was given. Therefore, the appellate authority CIT (a) was justified in concluding that the explanation given by the assessee subsequently cannot be accepted as the truth. It is a just and proper conclusion and thus the shortage of rectified spirit as on the date of search was correctly determined. The order of the Tribunal indicated that it was based only on the explanation given by the assessee nearly six months later. In the absence of any material indicating that at the relevant point of time excise officials had an occasion to certify the stocks in the course of their regular vigil over the premises of the assessee, the conclusion of the appellate Tribunal is only based on imagination and surmises - substantial questions of law answered in favour of the revenue holding that the Tribunal was not justified in placing reliance on extraneous material.
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