TMI Blog2011 (9) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... at this stage that the assessment proceedings had been initiated without issuing proper-notice under section 143(2) of the Act - Appeal is dismissed - IT Appeal No. 26 of 2011 - - - Dated:- 15-9-2011 - Shantanu Kemkar and Prakash Shrivastava, JJ. P.M. Choudhary for the Appellant. ORDER 1. This appeal under section 260A of the Income Tax Act, 1961 (Herein-after referred to as the Act) has been filed against the order dated 07.02.2011 passed by the Income Tax Appellate Tribunal, Indore in Appeal No. ITA-553/IND/2009. 2. In brief, the appellant is engaged in the business of snacks and sweet items. The notice of assessment under section 143(2) of the Act for the assessment period 2006-07 was given to the appellant and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness and completeness of the accounts of the appellant. Before rejecting the accounts, the Assessing Officer had given an opportunity of hearing to the appellant and thereafter, found that the appellant was using the registrax machine which gets set to zero every day. The details of the sales were not recorded in the books and in spite of the notice the appellant failed to submit any material to substantiate the cash sales. The cash-sales booked were not evidenced by sales-bills and the basis of its booking in cash book was not evidenced and the figures of cash-sales were found to be unreliable. The appellant also did not produce any details regarding the stock in spite of repeated requests by the Assessing Authority. No details of producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed so as to store adequate data, it was a necessary for the appellant to take appropriate steps in the matter of either upgrading the machine or taking print out on daily basis or make other suitable arrangements, so that the sales recorded can be verified from contemporous and regular records maintained on day-to-day basis. The lower capacity of such machine, as been procured by the assessee itself, cannot absolve the appellant from the obligation of maintaining necessary and verifiable details of sales. 4.3. Further, coming to the other aspect of consumption of Raw material, whatever the practical difficult is in the line of the appellant's business, it has to be necessarily held in the facts and circumstances of the appellant's case th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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