9911796707
TMI Blog1973 (2) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness in grocery such as sugar, rice, etc., both in wholesale and in retail. For the assessment year 1959-60, relevant to the previous year ending March 31, 1959, the assessee disclosed in its return a turnover of Rs. 3,48,088 and an income of Rs. 52,894 showing a gross profit of 5.1 per cent. Before the Income-tax Officer completed the assessment, the following facts came to his knowledge. The assessee's place of business was inspected by the sales tax authorities on August 26, 1958, and a pocket note book was found to be in the possession of one Dharmalinga Nadar, a clerk of the assessee. The said book contained entries relating to certain purchases effected by the assessee between April 1, 1958, to September 4, 1958, (not clear whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the said pocket note book which was the basis for making an addition in relation to the sales tax assessment, with a view to find out whether the income-tax return submitted by the assessee is correct and complete. After going through the pocket book and the other materials produced by the assessee, he found that there was no regular stock book recording the receipt of goods and that the finding of the sales tax authorities that a sum of Rs. 92,000 should be the suppressed turnover is acceptable. The Income-tax Officer, therefore, included the sum of Rs. 92,000 in the turnover of Rs. 3,48,088 disclosed by the assessee and estimated the income by adopting the gross profit rate of 8.5 per cent. as, against the gross profit rate of 5.1 per c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the income or that there has been non-disclosure of the particulars of such income, and that the turnover of Rs. 92,000 was added to his total turnover only on the ground that its account books are not reliable. The assessee also stated that in this case the enhanced assessment has resulted only because his explanation as to the ownership of the pocket note book and the relevancy thereof to his business has not been accepted by the Income-tax Officer, and that such rejection of his explanation alone will not constitute a reason for holding that the assessee had in fact deliberately concealed the said turnover of Rs. 92,000. The Tribunal, however, considered all the circumstances relating to the discovery of the anamath pocket note book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Anwar Ali. We, however, find in this case that, apart from the rejection of the explanation given by the assessee, there is concrete material in the form of entries in the anamath book which has been found to relate to the assessee's business. Some of the entries in the anamath pocket book actually find a place in the regular account books and this fact is not disputed by the assessee. Therefore, the authorities are justified in holding that the anamath pocket book should relate to the assessee's business. As a matter of fact, the finding given by the sales tax authorities that the entries in the anamath account book related to the assessee's business had not been challenged before the income-tax authorities. Therefore, it is not a case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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