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TMI Blog2016 (10) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... al questions of law that have been raised for consideration in this appeal are as follows: "(i) Whether on the facts and circumstances of the case, the order of the ITAT is not perverse in law ? and (ii) Whether on the facts and circumstances of the case, the ITAT in the absence of tangible materials was right in confirming double addition made to the sum of Rs. 15 lakhs over and above the income offered and taxable under any of the provisions of the Income Tax Act ?" 3. For the assessment year 2008-2009, the assessee, who was a dealer of pharmaceuticals, has filed Return in respect of his total income of Rs. 12,24,423/-. However, on 27.02.2008, survey operations were carried out at the business premises of the assessee under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,23,01,893/- during the current years as on date, as per your computer and in the absence of account books, how are you going to prepare a/c books ? Ans: In the absence of regular a/c books, as well as primary documents for the preparation of accounts I may not be able to draw proper a/cs and arrive at current income. Hence I am offering voluntarily Rs. 15,00,000/- (Rupees fifteen lakhs only) as income over and above the regular income and pay tax on this sum." 4. From the above statement, it is more than clear that the assessee has offered voluntarily Rs. 15 lakhs as income over and above the regular income. But however, he has booked certain expenditure in the immediate aftermath of the survey operations carried on 27.02.2008 and claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accounts were not maintained regularly and the additional incomes were brought to tax, it would not be fair to go into each and every item of expenditure debited to the P&L account, especially an estimated amount is admitted as additional incomes. In a sense where the additional incomes over and above the regular income were offered, the AO cannot go into the details of the expenditures as book results gets submerged under the provisions of S.145. Hence the additions cannot be sustained." 6. Hence, the Revenue went before the Income Tax Appellate Tribunal, which by its order, dated 12.02.2014, allowed the appeal of the Revenue. It is against this order that the present appeal is directed. 7. Heard Shri.N.Devanathan, learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain the quantum of regular income, normally that can be expected in respect of the Return filed by an assessee for the relevant assessment year, the assessing officer will look into the Returns of the immediately preceding four years period. From that, it has emerged that the gross turnover for the four preceding years, was shown to the tune of Rs. 3,44,27,963/-, Rs. 4,24,67,070/-, Rs. 5,79,89,402/- and Rs. 8,12,36,798/-. As against this, for the assessment year 2008-2009, the assessee has reported the gross turnover of Rs. 9,71,88,656/-. It is no doubt true that there was consistently considerable quantum of increase in the gross turnover and consequently, the gross profit and net profit had been reflected by the assessee by incremental in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no proper books of accounts maintained by the assessee and hence, it is not possible to infer that he has legitimately expended and claimed the expenditure in cash, particularly after the survey operations were carried out on 27.02.2008. In those set of circumstances, the Income Tax Appellate Tribunal has reversed that portion of the order of the CIT (Appeals) and restored the order of the assessing officer. The learned counsel for the appellant/assessee submitted that the finding of the Income Tax Appellate Tribunal is patently perverse and hence it calls for interference at our hands. 13. Perversity, as is too well known, is a factor which vitiates any exercise, legal or otherwise, determinative of the rights and obligations of the par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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