TaxTMI 
TaxTMI 
TaxTMI 
1990 (2) TMI 112
X X X X Extracts X X X X
X X X X Extracts X X X X
....proceedings the assessee was required to compile a list of sundry creditors and debtors in the control account and was called upon to produce details of opening stock, production stock and closing stock, etc. The assessee did not produce documents mentioned in para 2 of the assessment order for default of which assessment was again completed under section 144. 2. During the course of examination of books of accounts the assessing officer prepared a list of sundry creditors and sundry debtors. The totals of sundry creditors and sundry debtors did not tally with the figures given in the balance sheet by the assessee. The difference was accordingly worked out at Rs. 1,03,658. On an appeal to the CIT (A) the assessee explained that assessee ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing officer are provided to him on 9th August '88, the following order was passed by the Bench : " There is difference between the figures shown in the balance sheet under the head Control Debtors Account and the details given therefor as per the ledgers maintained. The difference is treated as income concealed by a process of working. But now the question arises as to whether the difference can have any relevance to the Trading Account which was finally accepted. Unless the difference is related to the Trading Account in some way a conclusion of concealment of income cannot be reached. The Authorised Representative said that the books of account of the 'A' were impounded for over 11 years, and if books are made available he would attempt ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he referred to the receipt issued by the Income-tax Officer, Central Circle-V,Kanpurwhich reads as under : " Receipt from Sri A.K. Chawala, M/s. Universal Book Stall, The Mall,Kanpurfollowing books and documents relevant for assessment year 1971-72 for investigation. They have been impounded by me u/s. 131 after recording necessary reasons therefor separately. 1. Cash Book (one) 2. Ledger(one) 3. Journal (one) 4. Suppliers Ledger (one,) 5. Journal book voucher's file (one) 6. Two files containing Bank statements 7. Purchase invoices in Twenty Nine bundles (which are mostly duplicate or photostat copies). " 7. Some of the books of accounts, have been released on15th March, 1977and the receipt has been placed before us. It is evident....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fraud or gross or wilful neglect on the part of the assessee. In such circumstances, penalty u/s. 271(1)(c) is unsustainable. The learned counsel has filed a copy of appellate order for the assessment year 1973-74 in the assessee's own case in I.T.A. No. 4971 (Del)/86 to show that on reconciliation of accounts a negligible difference was determined at Rs. 2936 for that year. The learned counsel contended that the books of accounts were available and that though considerable time was required reconciliation was possible. Since the cash book has not been made available by the Department, there is no justification for upholding the penalty. It was accordingly urged that the penalty imposed may be cancelled. 9. The learned Departmental Represe....