TMI Blog2022 (2) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... d accepted them for the subsequent AY 2001-02. For all of the aforementioned reasons, the two questions formulated by this Court are answered in favour of the Assessee and against the Department. - ITA Nos. 221, 222 and 223 of 2004 - - - Dated:- 2-2-2022 - S. MURALIDHAR CHIEF JUSTICE AND R. K. PATTANAIK, JUDGE Advocates, appeared in these cases by video conferencing mode: For Appellant(s) : Mr. Sidhartha Ray, Advocate For Respondent(s) : Mr. S.S. Mohapatra Senior Standing Counsel (IT) JUDGMENT Dr. S. Muralidhar, CJ 1. These matters are taken up by video conferencing mode. 2. The aforementioned three appeals arise from a similar set of facts and the questions of law are also identical. Accordingly ,thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f country liquor. It must be noted at the outset that as regards the AY 2001-02 the ITAT has accepted the books of accounts of all these three Assessees and has allowed their appeals setting aside the orders of the Assessing Officer (AO) and the Commissioner Income Tax (Appeal) [CIT(A)] affirming the said assessment orders. 7. It is seen in the impugned assessment order which is identical in each of the cases that although the AO accepted the fact that there was nothing wrong with the Assessee s books of accounts, only on the ground that sales memos were not filed, the books of accounts were rejected by the AO. When the matter went in an appeal to the CIT(A) it was noted by him in Para 1.3 of the order dismissing the appeals that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperly maintained. In Md. Umar v. Commissioner of Income Tax (1975) 101 ITR 525 (Patna) a Division Bench of that High Court accepted the Assessee s books of account and held that the rejection was based on suspicion and surmises as well as irrelevant material. In St. Teresa s Oil Mills v. State of Kerala (1970) 76 ITR 365 (Ker), a Division Bench of Kerala High Court held that the rejection of accounts was not justified particularly because it was based only on the fact of variation in the consumption of electricity. 10. In the present case, mere non-issuance of production of sale memos could not have been a ground to reject the entire books of account particularly since it pertained to sale of country liquor to tribal population ..... X X X X Extracts X X X X X X X X Extracts X X X X
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