TMI Blog2015 (10) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... and it cannot be said that there is a difference between such sales and the sales as credited by the assessee to the P & L account which again is net of sales tax, on account of the amount of sales tax. The explanation offered by the assessee while reconciling the difference in sales to this extent thus is not acceptable. As such considering all the facts of the case and the material placed on record before us, we hold that the difference in sales to the extent of ₹ 5,91,140 being purchase of fire wood and ₹ 68,915 being sale of packaging material stands explained and the addition made by the A.O. and confirmed by the Ld. CIT(A) on this issue is required to be deleted to that extent. We therefore, modify the impugned order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the explanation offered by the assessee in this regard was not found acceptable by him in the absence of relevant documentary evidence to support and substantiate the same, the difference of ₹ 12,57,688 was added by the A.O. to the total income of the assessee treating the same as un-recorded sales in the assessment completed under section 143(3) vide order dated 10.12.2007. 3. Against the order passed by the A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) challenging inter alia the addition of ₹ 12,57,688 made by the A.O. on account of alleged unrecorded sales. During the course of appellate proceedings before the Ld. CIT(A), the following submission was made by the assessee in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les of ₹ 1,53,37,105. Besides this the Firewood is debited to P L Account, the APGST and CST is paid to the Government except for the amounts of ₹ 9,796 under APGST and ₹ 9,758 under CST shown as provision and reflected in the balance sheet under current liabilities. If at all any addition is to be made, it should be to this extent of ₹ 19,554 being credit balance, but for making an entry of provision. The value of Packaging material of ₹ 68,915 is admitted as other income in the P L Account. Therefore the appellant submits that the addition of unaccounted sales by the AO is not correct. The present appeal is against this order. 3.1. The above submission made by the assessee was forwarded by the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Officer vide his Order dt.20.03.2006 Rs.1,66,66,050 Add: Sales Tax APGST CST ₹ 6,68,365 Rs.1,73,34,415 For the purpose of determination of turnover, the turnover includes APGST CST. Hence, the turnover of the assessee may be ₹ 1,73,34,415. 4. After considering the submissions made by the assessee as well as the material available on record including the remand report submitted by the A.O., the Ld. CIT(A) held that there was no clinching evidence filed by the assessee in support of the explanation offered as regards the difference in sales as declared to the sales tax authorities and inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Although the learned D.R. has contended that different explanation has been offered by the assessee at different stages while explaining the difference between the turnover as declared to the sales tax authorities and to the income tax authorities, we are of the view that the explanation offered by the assessee reconciling such difference before us is required to be finally considered on merit in the light of relevant documentary evidence produced by the assessee in support. As pointed out by the Ld. Counsel for the assessee in this regard from the relevant assessment order passed by the concerned sales tax authority placed at page Nos. 5 to 8 of the paper book, purchase of fire wood amounting to ₹ 5,91,140 is inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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