TaxTMI 
TaxTMI 
2009 (10) TMI 561
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....y" for short) in I. T. A. No. 18/HBL/CIT(A)/HBL/2003-04 dated September 30, 2003 confirming the order of assessment dated March 26, 2003. 2. The respondent-firm filed its return of income for the assessment year 2000-01 on October 30, 2007 declaring the income of Rs. 1,95,400 and notice was issued under section 143(2) of the Act, 1961 (hereinafter called as " the Act" for short) on April 9, 2001, and the assessee was asked to pro- duce the books of account and furnish the details and explanation for the queries raised. The assessee is a manufacturer and dealer in wheat pro- ducts. A survey was conducted onOctober 3, 2000and during the course of survey, it is found that the assessee had absolutely no stock book and separate manufacturing ....
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....hat total income of the assessee-firm was computed as under : Rs. Rs. Income returned 1,95,400 Add : 1. For low G.P. declared (para 3) 3,72,080 2. Excess quantity obtained and sold (para 4) 2,69,050 3. Under job work (para 5) 37,080 4. Loss disallowed in respect of sales of bran to sister concern (SPF) (para 6) 1,02,420 5. Difference in valuation of closing stock (para 7) 63,999 6. Trade discount disallowed (para 8) 1,52,154 7. Interest disallowed on account of diversion of funds sister concern (para 9) 37,716 10,34,499 Total income 12,29,899 Round off to ....
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....er of assessment. Being aggrieved by the order passed by the appellate authority datedSeptember 30, 2003, the assessee preferred appeal before the Appellate Tribunal and the Tribunal by order datedMay 25, 2005, allowed the appeal deleting the additions made by the Assessing Officer. Being aggrieved by the said order of the Appellate Tribunal, the Revenue has preferred this appeal. 4. The appeal was admitted on October 19, 2006 for consideration of the following substantial questions of law : " (i) Whether the Tribunal was correct in holding that there were no irregularities pointed out by the Assessing Officer in order to reject the books of account and estimate the gross profit based on the previous years despite the fact that....
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.... if the value of the closing stock is increased then the Assessing Officer had to reduce the gross profit in the next year and therefore addition of Rs. 63,999 the difference in valuation of closing stock could not be added with- out basing such finding on any cogent reason and consequently recorded a perverse finding ? (vi) Whether the Tribunal was correct in proceeding to hold that the trade discount of Rs. 1,52,154 which had been disallowed by the Assessing Officer on the ground that the credit notes or any evidence to show that such discount had been extended to various parties should be made available had not been produced therefore, the same had been disallowed cannot be dispensed with when granting relief and consequently, recorded a....
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....bunal cannot be sustained and all questions of law have to be answered in favour of the Revenue and the order passed by the Tribunal is liable to be set aside. 7. On the other hand, the learned counsel appearing for the respondent- assessee submitted that the assessee would not have filed the appeal if he had offered to include income of Rs. 11,50,000. Books of account had been maintained and the impugned order passed by the Tribunal is based upon the material on record and does not call for interference in this appeal and questions of law may be answered in favour of the respondent and against the appellants. 8. We have given careful consideration to the contentions of the learned counsel appearing for the parties and s....