TaxTMI 
TaxTMI 
2014 (4) TMI 899
X X X X Extracts X X X X
X X X X Extracts X X X X
....est judgment assessment, even though the assessee himself has admitted that his accounts are not full and complete? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding that books cannot be rejected and best judgment assessment cannot be done in a case where the accounts have been audited under Section 44AB? 3. Whether on the facts and circumstances of the case, the Tribunal ought to have taken into account the full and true disclosure made before the Settlement Commission regarding inflation of stock for earlier and subsequent years to decide the issue? 2. The assessee is a firm engaged in the business of whole-sale and retail distribution of auto spares and accessories of two and three wheelers. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... were 'sales turnover'. The claim of the assessee was however rejected by the Assessing Officer on the ground that the assessee's turnover during the year was Rs.5,56,35,636/- and the assessee's accounts were audited by a qualified Chartered Accountant as required under Section 44AB of the Income Tax Act; there was nothing on record in the audit report to show that the closing stock was on estimate basis only and that the sales suppressions were introduced in the names of sundry creditors; the assessee had not produced any details to the effect that the actual closing stock as on 31.03.2009 was less than Rs.2,00,00,000/- in the balance sheet. In the background of the facts stated, the Assessing Officer invoked Section 68 of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessee was confronted with the question that more than the two-third of sundry creditors remain unconfirmed, the assessee took this stand that the entire amount be treated as 'sales suppressions', hence, assessed as business income. The First Appellate Authority pointed out that the assessee had not produced any evidence to support its submissions that the closing stock was an estimated figure and the sales suppressions were reflected as sundry creditors. In the circumstances, the Commissioner of Income of Tax (Appeals), rejected the appeal filed by the assessee. 4. On further appeal before the Income Tax Appellate Tribunal, it was pointed out that no relevant documents/materials produced before it, that the report of the Auditor ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....be treated as 'business income' only and not under Section 68 of the Income Tax Act. She further pointed out that to the application and the Order of the Settlement Commission accepting the case of the assessee, which is now subject matter of writ petition No.34645 of 2012 filed before this Court at the instance of the Revenue. 6.Learned Senior counsel contended that on account of the proceedings pending in Writ Petition No.34645 of 2012, wherein stay of proceedings before the Settlement Commission had also been granted by this Court, the Tax Case (Appeal) be admitted. We do not agree with the submission made by the assessee, moreso, in the context of a convenient stand taken by the assessee as an after thought before the Assessing....