2022 (2) TMI 237

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....s are being disposed of by this common judgment.   3. As far as ITA No.221 of 2004 is concerned, it arises from an order dated 23rdAugust, 2004 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (ITAT) in ITA No.542/CTK/2003 for the Assessment Year (AY) 1998-99. While admitting this appeal by order dated 8th May, 2017 the following two questions of law were framed by this Court for determination: "I) Whether in the particular facts and circumstances of the case rejection of books of accounts and estimation of profit can be said to be legal and proper ? II) Whether the ITAT is legally correct in holding that rejection of books of accounts solely on the ground of non-issuance of sale memos is proper and justified ?"....

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....t pointed out any specific omission or commission nor cited any specific instance of irregularity in the books of accounts" and that the only reason for rejection was that "element of inflation in purchases or incorrectness of purchase could not be ruled out". However, it was again surmised that "there was also possibility of suppression of sale price". It is therefore plain that both the AO and CIT(A) proceeded on surmises and conjectures with no supporting material to justify the rejection of the Assessee's books of accounts. The ITAT having accepted the Assessee's accounts for the subsequent AY 2001-02 for some reason did not accept them as far as the AY in question was concerned. 8. Where the issue is of sale of country liquor to triba....