TMI Blog2005 (7) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... "the Act") by the assessee, are directed against order dated July 11, 2003, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (for short, "the Tribunal") in I.T.A. Nos. 396/Chandi/96 and 474/Chandi/96, pertaining to the assessment year 1992-93. According to the assessee, the said orders involve the following substantial questions of law: "(i) Whether under the facts and circumstances of the case the Tribunal was justified in law in upholding the applicability of the provisions of section 145(2) without finding any material or evidence on record for rejection of books of account? (ii) Whether under the facts and circumstances of the case, the Tribunal's concurrence on the rejection of books of account with the Commissioner of Income-tax (Appeals) is without any basis and hence making estimation is perverse? (iii) Whether under the facts and circumstances of the case, the Tribunal is justified in upholding the addition of Rs. 15,50,000 on the basis of yield of the earlier year without appreciating that no material or evidence have been found to come to a conclusion for making such estimation and the basis as per yield for the assessment year 1991-92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of inspection, namely, 53 sale vouchers, of which original and duplicate copies were not available, perhaps used for effecting the unaccounted sales, and only one copy out of the three was retained. Since no amount was mentioned in the said copy, the Assessing Officer worked out the average sale per bill based on four bills, also seized during search indicating sale of Rs. 4,99,386, which were not entered in the books of account. By taking the average sale per bill and multiplying the same by 53, the Assessing Officer worked out the total unaccounted sale of vanaspati ghee at Rs. 66,16,865. After including the said amount in the declared sales, the yield percentage worked out to 94.91 per cent., which was comparable with the yield for the earlier assessment years. Besides the said addition, the Assessing Officer also noticed that the assessee had an installed capacity of oxygen gas of 50 metric tonnes per day. Observing that being a precious and expensive item, being sold at Rs. 54 per cylinder, the assessee would not like to waste it, he estimated the ratio of production of oxygen gas vis-a-vis ghee per metric ton at 1:3 and thus, came to the conclusion that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted by the Assessing Officer, namely, averaging of sales on the basis of four bills, which contained specific details of the unaccounted sales aggregating to Rs. 4,99,386, may not be a correct estimation of income because no such specific details were found recorded in the remaining vouchers. Nevertheless, the Tribunal felt that adoption of trading results for the assessment year 1991-92 by the Commissioner (Appeals) was fair and reasonable. Thus, the Tribunal upheld the view taken by the Commissioner (Appeals). Hence, the present appeals. We have heard Mr. Pankaj Jain, learned counsel appearing on behalf of the assessee, and Dr. N.L. Sharda, learned counsel appearing on behalf of the Revenue. Assailing the findings recorded by the Tribunal as perverse, Mr. Jain has vehemently urged that the Tribunal committed a serious error in law by adopting the four bills, on which the sale was recorded, as the foundation for sustaining the addition on the basis of a single copy of 53 blank vouchers, particularly when no action was taken by the Excise and Taxation Department for any sale outside the books of account on the basis of the said bills. Learned counsel has also submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee are substantial questions of law or not, we are of the view that none of the issues raised can be categorised as a substantial question of law, requiring consideration by this court. It is well-settled that it is not possible to catalogue various types of defects in the account books of an assessee, which may render rejection of books of account on the ground that the accounts are not correct or the correct income cannot be deduced therefrom to invite the applicability of section 145(2) of the Act. It is also true that the absence of the original copies of 53 invoices in a given situation may not per se lead to an inference that the accounts maintained by the assessee were false or incomplete. Nevertheless, the absence of original invoices coupled with the fact that the excise authorities did find some incriminating material during inspection, namely, four bills, which have not been disputed by the assessee, did lead to an inference that the accounts disclosed did not comprehend all the transactions and the assessee's projected trading results required deeper scrutiny. We are of the view that in the light of all this material, the authorities below were justified in re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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