1993 (12) TMI 28

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....by R. K. GULATI J.--This is an application under section 256(2.) of the Income-tax Act, 1961 (for short, "the Act"). The sum and substance of the four questions proposed in this application is whether the Income-tax Appellate Tribunal misdirected itself and committed an error of law in holding that, on facts, the provisions of section 145(2) of the Act were attracted and the assessment was to b....

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....gister was maintained. The assessee could not furnish the periodical retail sale price of the liquor. On inquiries, the Assessing Officer was informed by the District Excise Officer that the liquor contractors were free to fix the sale price of liquor and there was no control over the selling rate. A clear finding was recorded that the profit and loss account furnished by the assessee does not dep....

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....sed, will be an overdraft on human credibility....It is difficult to believe that having paid the licence fee of Rs. 25,40,000, the assessee could earn net income of Rs. 36,727 alone." Finally, the Tribunal held that, on the facts and in the circumstances of the case, the book result was rightly rejected and no case for interference was made out. The various findings recorded by the tax auth....

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....which may render rejection of account books on the ground that the accounts are not complete or correct from which the correct profit cannot be deduced. Whether the presence or the absence of a stock register is material or not would depend upon the type of business. It is true that absence of the stock register or cash memos in a given situation may not per se lead to an inference that the accoun....