TaxTMI 
TaxTMI 
2012 (8) TMI 150
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....aw and on facts in confirming the trading addition on account of suppression of sales at Rs.6,50,000/-, out of the total addition of Rs.22,98,053/-, without considering the full facts and further estimating the sales at Rs.1,30,00,000/- against Rs.1,40,21,892/- by application of net profit @5%, which is quite excessive. 2. During hearing of these appeals, we have heard Shri Hitesh Chimnani, ld. Counsel for the assessee and Shri Arun Dewan, ld. Sr. DR. The crux of arguments on behalf of the assessee is that the assessee is dealing in country liquor whereas the ld. Assessing Officer applied the facts of Indian made foreign liquor. It was pleaded that stringent and excise duty check is applicable on the assessee and the dispute is with regard....
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....were produced. On perusal of the details, it was found by the ld. Assessing Officer that the sale rate of the liquor was different for the different period, which is summarised as under: Period Masala Liquor Plain Liquor 750 ml 375 ml 180 ml 750 ml 375 ml 180 ml 1.4.07 to 15.10.07 104/- 52/- 26/- 84/- 42/- 21/- 16.10.07 to 31.1.08 88/- 44/- 22/- 68/- 34/- 17/- 1.2.08 to 31.3.08 96/- 48/- 24/- 76/- 38/- 19/- 3.1 In view of the above, the learned Assessing Officer was of the view that the sale rate from the month of October, 2007 onwards was significantly low, therefore, in the absence of satisfactory explanation from the assessee and the letter of the excise department dated 12.11.2010 stating that ther....
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....d hereinabove, we find that the learned CIT(A) has reasonably estimated the same, therefore, we find no infirmity in the conclusion drawn by the learned CIT(A). It is affirmed. 4. The next ground pertains to confirming the addition of Rs.8,20,628/- on account of extinguishment of liability u/s 41(1) of the Act. The crux of arguments on behalf of the assessee is that the learned CIT(A) is quite unjustified in confirming the addition without considering the full facts and the legal position, therefore, it was pleaded that the conclusion drawn in the impugned order is quite illegal. It was also pleaded that the liabilities are outstanding in the balance sheet, therefore, the limitation period does not apply. On the other hand, the learned Sr.....
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.... of the Hon'ble Calcutta High Court in 117 ITR 621 and distinguished the decision in Morley (HM Inspector of Taxes) vs. Tattersall; 7 ITR 316; (1938) 22 TC 51 (CA) and considered the decision in Bijli Cotton Mills Private Limited v. CIT; 81 ITR 400 (All) and CIT v. Sandersons & Morgans; 75 ITR 433 (Cal). We are usefully quoting the relevant portion from the aforesaid decision of the Hon'ble Apex Court in Karamchand Thapar & Others; 222 ITR 112 :- " In the instant case, the assessee collected the amounts of under-charges in advance even before any claim was lodged. He realised the amounts from the colliery company not because any demand was made against him but possibly in order to protect himself from the eventuality of any demand being ma....
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....by the Assessing Of f icer , has been challenged. In our view, in the light of the disposal of the appeal of the assessee, this ground has remained for academic interest only especially when we have affirmed the stand of the learned CIT(A), therefore, this ground of the Revenue is having no merit . 6. The last ground pertains to deleting the addition of the addition of Rs.1,12,000/ - u/s 40A(3) of the Act wherein i t was held that the cash payment was made as per the direct ions of the excise authorities. 6.1 The crux of arguments on behalf of the revenue is in support of the assessment order whereas the learned counsel for the assessee defended the impugned order. 6.2 We have considered the rival submissions and perused the material ava....