TMI Blog1996 (5) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... d with Explanation 1 was not leviable ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law to hold that it was not a case where the explanation offered by the assessee could not be substantiated by it ?" The brief facts giving rise to this reference are these : The assessee filed a return of income on July 30, 1979, declaring a total income of Rs. 3,080. It was a case of country liquor business. During the year in question, the assessee was licensed by the State excise authorities to carry on the business of trade in country liquor from several shops located at Satna and other areas on a licence fee of Rs. 14,25,000. The assessee disclosed sales of Rs. 21,82,346 and a profit of Rs. 3,080. Alon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... situated at distant interior places, it had to spend a sizeable sum on account of transportation and travelling expenses. (ii) Sale memos and stock registers were also available and produced. From the account copies, it was not ascertainable whether any expenses were shown for travelling, since neither in the profit and loss account, nor in the trading account, such expenses were appearing. Sales were shown to be low. In other cases, for the same period, sales were more than twice the licence fee. The assessee did not furnish details of sealing charges, transportation charges and many other incidental expenses. The Assessing Officer, after taking into consideration and in obedience to the direction given by the Inspecting Assistant Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the matter, set aside the penalty and held that it was a simple case of rejection of book results and estimation of income by applying flat rates. It was also held that the Assessing Officer did not record the finding of fraud or gross or wilful neglect on the part of the assessee. On appeal by the Revenue before the Tribunal, the Tribunal affirmed the finding of the Commissioner of Income-tax (Appeals) and has made a reference of the aforesaid two questions of law for answer by this court. We have gone through the orders of the Tribunal and the Commissioner of Income-tax (Appeals). We are satisfied that both the authorities have correctly approached the matter and found that there was no fraudulent attempt on the part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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