1981 (10) TMI 106

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the case of the assessee for asst. yr. 1976-77. ITA No. 689 (Mds)/80 deals with the question of registration while the ITA No. 690 (Mds)/80 deals with the order of the first appellate authority in the quantum appeal. Since the facts are inter-dependent they are dealt with together. 2. The assessee is a firm. The ITO noticed certain discrepancies between the figures of sales as furnished by the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....one in the mercantile system of accounting. It is further urged that there is no reason why the assessee should adopt a system different from the purchaser. We find that the ITO proceeded on the basis that there was suppression of sales. The matter was to be remitted because there was prima facie material to suggest that the difference was due to the method of accounting. It is certainly open to t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t that the losses also were to be divided equally. Since all were adult partners he did not find the objection valid. In the appeal before us the grounds of appeal confined the objection to the ground of alleged non-division of 'unaccounted' profits. We have found that the assessee had, prima facie, explained the variation between the sales shown by the assessee to Associated Cement Co. and the pu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on, it was agreed that only one of them would be entitled to such unaccounted profits as against the provision in the deed wherein six partners were eligible for the share of profits in stipulated ratios. Similarly, the Allahabad High Court in case of Krishna Gopal and Bros. vs. CIT 1976 CTR (All) 65 : (1977)110 ITR 378 (All) was dealing with a case where it was found that an admitted income of th....