9911796707
TMI Blog2022 (11) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... of sales of general consumer products like face powder, pain balms, chocolates, shaving blades etc. The Petitioner is an assessee registered on the files of the 2nd Respondent. There was an inspection, which was conducted in the place of the Petitioner's business premises on 06.12.2014 and 08.04.2014. During the course of inspection, the following defects were noticed: (a) The verification of bank statement reveals that a sum of Rs.9,77,35,488/-(Rupees Nine Crores Seventy Seven Lakhs Thirty Five Thousand Four Hundred and Eighty Eight only) has been credited to the account of the Petitioner, whereas, the sales statement in terms of the return only disclosed turn over of Rs.6,30,58,848/-(Rupees Six Crores Thirty Lakhs Fifty Eight Thousa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd revised returns were also filed rectifying the same. If the revised return is taken into account, the stock variation would work out only to Rs. 6,660/-(Rupees Six Thousand Six Hundred and Sixty only). The explanation with regard to stock variation is concerned, was rejected stating that the filing of the revised returns was an after thought and the documents were fabricated. 4. It is submitted by the learned counsel for the Petitioner that the impugned order has been passed on gross non-application of mind, particularly, insofar as the first aspect viz., the difference between the bank statement and the turn over report. In this regard, reference was made to the judgment of the hon'ble Supreme Court in the case of Girdhari Lal Nann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more, lead to the inference that the said sum represents the income of the firm accruing from undisclosed sale transactions. It was, in our opinion, necessary to produce more material in order to connect the amount of Rs. 10,000 with the income of the assessee-firm as a result of sales. In the absence of such material, the mere absence of explanation regarding the source of Rs. 10,000 would not justify the conclusion that the sum in dispute represents profits of the firm derived from undisclosed sales." 5. It was submitted that though the above judgment of the Hon'ble Supreme Court was brought to the notice of the learned Assessing Officer, the same has not been even dealt with by the Assessing Officer, which clearly shows gross non-a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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