TaxTMI 
TaxTMI 
1992 (2) TMI 139
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.... Hence, he held that the books of account were unreliable and estimated the income at Rs. 15,00,000 for each of the two assessment years. On appeal, the CIT (Appeals) noticed that the adverse comments of the statutory auditors were in the region of non-certification of outstanding balances and deposits with bank, non-statement of certain contingent liabilities, non-provision for certain interests that had accrued on loans granted to the company by the Government, non-accounting of interest on due basis on hire purchase sales, misclassification of items in the profit and loss account and balance-sheet. shortages deducted during the physical verification not being provided in the account, absence of adequate system of internal control, etc. H....
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....nt without providing even the minimal infra-structure for it to discharge the multi-farious activities. Its accounts were handled by trainees. The undertaking had multi-faced activities in a sprawling area spread over the length and breadth of the State of Kerala. Part of its records was lost in the floods. Therefore it was unable to satisfy the statutory auditors on their queries because of loss of records. Similar situation was faced by the appellant in the assessment proceedings also. The CIT (Appeals) had recognised the difficulties of the assessee, but then he had determined the income of the assessee at 'nil' overlooking the losses sustained by it in each of these years. He submitted that at least depreciation and investment allowance....
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....atuity in a sum of Rs. 17,352, amortisation of preliminary expenses in a sum of Rs. 1 1,666 and 100 per cent depreciation on tools in a sum of Rs. 2,40,896. The CIT (Appeals) had not disallowed any of these claims made by the assessee. What he had done was only to reduce the deficit of Rs. 3,87,776 to nil. That would mean that the book loss of Rs. 5,16,672 as per accounts was reduced by an amount of Rs. 3,87,776 in view of the several defects noticed in the accounts. In our opinion this is only a modest disallowance. Revenue is not on appeal and we have no power of enhancement. Therefore, we do not find any substance in the appeal of the assessee for the assessment year 1979-80. The same is dismissed. 7. For the assessment year 1980-81, ....
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....; material section have been properly collected Rs. 33,12,10 and goods in transit accounted. Sales effected on agency amounting to Rs. 19,61,629.20 were accounted basis of IPCL products was also for in the books for the year only in July registered in the sales register 1985. The above omissions were forced to be separately. Agency sales amounting to found out by the Corporation only on our pointing Rs. 33,75,642....