2008 (2) TMI 177

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....ncome-Tax Appellate Tribunal, Ahmedabad Bench "C" has referred the following question for the opinion of this Court under Section 256(1) of the Income-Tax Act, 1961 ("the Act") at the instance of the Commissioner of Income-tax. "Whether, the Appellate Tribunal is right in law and on facts in deleting the addition of Rs.10,85,003/- made on account of unaccounted cash sales ?" 2. The Assessment Ye....

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.... Singh, son of the assessee). The loose sheets were examined and tallied by the Inspector of the Department and it was found that for the period up to 31st March, 1984 sales to the extent of Rs.10,85,003/- were not found in the Books of Accounts of either Concern. After issuing Show Cause Notice and considering the reply filed by the assessee, the Income-tax Officer did not agree with the assessee....

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....dated 26th August, 1987, partly allowed the Appeal by holding as under : "The ITO's finding that the sales in the regular books of accounts might not have been entered in the loose sheets is based only on surmises. The ITO's presumption of ticked or unticked as well as rounded or unrounded sales transaction has no valid and tenable basis. In this background, I am inclined to accept the contention....

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.... Heard Mr. B. B. Naik, learned Standing Counsel for the applicant " Revenue and Mr. M. J. Shah, learned Advocate for the respondent" assessee. Mr. Naik has not been able to dislodge the findings recorded by the Tribunal that the Revenue had not proved, by bringing any material on record, that the assessee had made any investment to make the alleged unaccounted sales. 6. Hence, in absence of any m....