1981 (3) TMI 114

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e materials the ITO fixed the income of the firm at Rs. 8,55,180. In arriving at this figure, he had disallowed certain expenditure and added certain cash credits. There are in dispute before us. 2. The first point for decision is the expenditure of Rs. 32,870 claimed by the assessee in respect of Punalur arrack shop. This was to be of a large number of small items. Accordingly to the assessee, they were expenses incurred by them in arranging for the search of the illicit distilleries within the Range alloted by the Excise authorities. The presence of illicit distilleries within their Range was a competition for their products. So, the assessee was interested in putting out such distilleries. For this purpose, the assessee had incurred t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....m Thenmala Coupe as on 31st May, 1973 to be Rs. 4,606. The ITO thought that in respect of Thenmala Coupe, this figure should be adopted instead of the book figure. The CIT(A) did not deal with this point. 6. We are of opinion that the figure as per books should be adopted. Merely because a statement was found which showed the profit as on 31st May, 1973, it does not mean that the amount shown therein is the profit for the year. The account books had been seized and they had been scrutinised by the IT Dept. No entry in the books supports or corroborates the figure given in the statement. Obviously then the figure of Rs. 4,606 represents profit for some other period which may be more than 12 months. It would be more reasonable to go by the....