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2008 (9) TMI 516 - GUJARAT HIGH COURTSearch and Seizure - The respondent-assessee is the owner of mines at different sites from which the assessee was extracting marble blocks. Such marble blocks are converted into slabs and marble tiles are manufactured from such slabs. The Assessing Officer worked out the unaccounted sales for the entire financial year, namely, from April 1, 1990 to March 31, 1991. Unaccounted sales were worked out on the basis of certain instances of underinvoicing. The Assessing officer took sales on the basis of underinvoicing at a figure of Rs. 78,73,938 and applying average rate of 50 percent. made addition. The Commissioner (Appeals) adopted a rate of 40 percent as being sale which were underinvoiced. Held that- (1) what should be the percentage adopted in a given set of facts of a case was a question of fact. The Tribunal had recorded that a copy of the seized diary contained unaccounted sales and unaccounted expenditure for the period from October 13, 1990 to February 19, 1991, and this fact had been verified by the Tribunal from the paper book 19, 1991 and this fact had been verified by the Tribunal from the paper book filed before the Tribunal. The Tribunal had thereafter stated that if unaccounted sales and income therefrom were estimated for the period from April 1, 1990 to Feb, the assessee could not be denied deduction of corresponding expenditure for the period between April 1, 1990 to October 12, 1990. Therefore, the Tribunal accordingly deleted the disallowance sustained by the Commissioner (Appeals). There was no legal infirmity I the order of the Tribunal.
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