2018 (7) TMI 1817

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....I(TAXES) AND SRI.JOSE JOSEPH, SC, FOR INCOME TAX FOR THE RESPONDENT(S) : ADV. SRI.T.M.SREEDHARAN (SR.), ADV. SRI.V.P.NARAYANAN AND ADV. SMT.DIVYA RAVINDRAN JUDGMENT Vinod Chandran, J The question of law arising in the aforesaid case, is reframed as follows: Whether the entire sales suppression detected on survey could be taken as taxable income when there was no suppression found on....

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.... assesee being a Bar Hotel purchased Indian made Foreign Liquor (IMFL for brevity) only from the Kerala State Beverages Corporation (Corporation for brevity) and there is no allegation levelled of other purchases. 4. The facts in the cited decision, in an application compelling reference is not clear. What little is discernible is that the assessee was alleged to have moved finished goods from ....

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....ly to distribute IMFL to the Corporation. The assessee-a Bar hotel could not have purchased IMFL from any other source. The purchases from the Corporation is fully accounted. It is hence contented that the sale suppression fully cannot be taken as the income. 6. The specific allegation raised on survey as is disclosed from the assessment orders are available in the assessment orders. For the ye....

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.... price was reflected in the accounts while a far higher price was disclosed from the material recovered on survey. This does not require any further investment on purchase and is essentially an allegation of more gross profit having been obtained than that returned. 7. It was on the above basis that the sales turnover of IMFL was estimated at Rs. 2,38,77,112/-. In addition to that disclosed in ....