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2018 (7) TMI 1817 - HC - Income TaxSales suppression detected on survey - Whether could be taken as taxable income when there was no suppression found on purchases? - Held that:- 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 fact that there was no investment made outside the books of accounts would not help the assessee in the present case. As was noticed, the purchase turnover does not alter at all since the purchases can only be made from a State owned 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.
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