TaxTMI 
TaxTMI 
2006 (1) TMI 460
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.... register was found which contained the details of sales as well as expenses. The register was from 1-7-1998. As per this register sales for the period 1-7-1998 to 30-3-1999 amounted to Rs. 41,50,734 as against sales of Rs. 41,22,510 accounted by the assessee. As per the trading and profit and loss account prepared for this period, gross profit was Rs. 4,39,698. Closing stock was Rs. 1,01,999. The Assessing Officer has pointed out the following discrepancies:- (a)No bills or vouchers produced in support of purchases and expenses. (b)No basis given for closing stock. (c)A sum of Rs. 42,233 debited under the head 'excise office' but no vouchers of details given. (d)Rs, 2,72,499 debited as salary while the salary paid as per impounded regi....
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.... of the assessment order. The fact, however, remains is that even if the registers are accepted as true the profit is Rs. 4,39,698 out of which salary to partner and rent for the premises have to be debited. The net taxable income therefore cannot exceed the returned income of Rs. 1,88,500. This was the contention raised by the assessee during the course of assessment and also before me in appellate proceedings. The Assessing Officer on the other hand has taken the sales figures from the register but has applied a net profit percentage at 15 per cent and as estimated the taxable income after allowing remuneration to the partners at Rs. 1,92,000 which is against his own estimation. The assessee objects to the net profit estimated at 15 per c....