TaxTMI 
TaxTMI 
2015 (10) TMI 389
X X X X Extracts X X X X
X X X X Extracts X X X X
....idual. 3. Shri A.V. Sreekanth, the Ld. Departmental Representative, submitted that there was a survey under Section 133A of the Income-tax Act, 1961 (in short 'the Act') conducted on 27.02.2008 in the business premises of the assessee. During the course of survey operation, incriminating materials were found in relation to suppression of sale of liquor at Rohini International Bar, T. Nagar, Chennai. According to the Ld. D.R., in the Permit Room of Rohini International Bar, the price of liquor entered in daily stock sheet was substantially less than the price mentioned in the menu card. The assessee kept the current books in the Bar. On examination of one Shri Raju, in-charge of Rohini International Bar, it was found that suppression of sale was done from 5 to 6 years earlier. The said Shri Raju further confirmed that the Bar bill books would be destroyed and separate set of sale bills would be prepared underlying the sale price. The Investigation Department worked out the average sale suppression at 56.33%. 4. The Ld. D.R. further submitted that the assessee explained before the Assessing Officer that the collection from Rohini International Bar was calculated on the basi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for various reasons. One of the reasons presumably may be to attract many customers. Whatever may be the reason, the menu card should also reflect the sale price, happy hours discount and discount that may be given to corporate guests, walk in customers, etc. The menu card or tariff card said to be found during the course of survey operation does not mention or disclose any of the discounts said to be given by the assessee during happy hours to corporate guests, walk in customers, etc. However, we cannot totally rule out the claim of the assessee that certain discounts are given to the corporate guests, walk in customers and happy hours discount. Therefore, this Tribunal is of the considered opinion that the assessee might have given some discount. In the absence of any material like reference in tariff card or menu card, it cannot be ruled out that the assessee inflated the discount said to be given to corporate guests, walk in customers and happy hours discount, etc. In fact, Shri Raju, who is in-charge of Rohini International Bar, admitted before the authorities that the sale suppression was done from 5 to 6 years earlier. He has further admitted that bill books are destroyed an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the Ld. counsel, Rohini Lodge is situated in the heart of the city, therefore, normally the occupancy rate is high. However, it cannot be estimated to 100% at every time. Therefore, according to the Ld. counsel, the CIT(Appeals) ought to have deleted the entire addition made by the Assessing Officer instead of restricting the same to 50% of the estimation made by the Assessing Officer. 8. On the contrary, Shri A.V. Sreekanth, the Ld. D.R. submitted that during the course of survey operation, the revenue authorities found incriminating materials which disclose suppression of lodge receipt. On examination, the Receptionist Shri R. Krishnamurthy, who is in-charge of the lodge, admitted that as per collection bills, the total comes to Rs. 7,27,979/-. However, as per the collection sheet, which was found and impounded by the survey team, the receipt was Rs. 2,35,714/- only. The assessee could not give any explanation for the difference found between the bill book and collection sheet. Therefore, the Assessing Officer found that the assessee has suppressed the actual receipt of room rent from Rohini Lodge. The actual suppression found for the month of January and February, 2007 was in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the CIT(Appeals) and accordingly the same is confirmed. 10. The next ground of appeal is with regard to estimation of suppression of sale from Rohini Lodge Permit Room. The Assessing Officer, on the basis of the material found, estimated the suppression of sale at 47%. However, the CIT(Appeals) restricted the same to 30%. While considering an identical issue in the earlier part of this order, this Tribunal, after considering the price discount that would be given to the customers in happy hours, corporate guests and walk in customers, estimated the profit at 26%. For the very same reason, this Tribunal is of the considered opinion that estimation of profit at 26% would meet ends of justice. Accordingly, the orders of the lower authorities are modified and the Assessing Officer is directed to estimate 26% on suppression of liquor sales instead of 47%. 11. The assessee has taken one more ground with regard to addition of Rs. 1 lakh as income from restaurant. Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the Assessing Officer made an addition of Rs. 1 lakh towards income from Rangeetha restaurant which is in fact functioning from the premises of Rohini Lodge. Ac....