COMMISSIONER OF INCOME TAX AND THE JOINT COMMISSIONER OF INCOME TAX, ASSESSMENT, SPECIAL RANGE-3 Vs. MEASUREMENT SYSTEMS PVT. LTD.

JUDGEMENT

(1.) RE : ITA No. 407 of 2004: 1. This is an appeal of the revenue under Section 260A of the Income Tax Act, 1961 [for short the Act].

(2.) THE assessment year is 1996 -97 and the assessee is a private limited company. The assessee had originally filed a return of its income under Section 139(1) of the Act as per the return dated 29 -11 -1996, disclosing a taxable income of Rs. 17,06,295/ -.

(3.) WHILE processing this revised return, the assessing officer found that certain claims of the assessee such as receipts of a sum of Rs. 24,44,000/ - from M/s Associated Edible Oil Ltd., and further amount of Rs. 24,15,000/ -from M/s ACC Ltd., were not genuine receipts, in the sense, the assessee had not effected the sales of any product in respect of which the said two companies could have issued such receipts and which version was in fact corroborated, as the assessee's own extract of accounts with these two companies produced by the assessee itself did not contain the corresponding entries in the books of account and therefore the assessing officer thought it fit to add back these amounts to the taxable income of the assessee i.e. a sum of Rs. 48,59,000/ - as taxable income to the already disclosed amount of Rs. 2,49,927/ - and concluded the assessment on such premise after making adjustments in respect of other claims and deductions etc.