DHANUSH GENERAL STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The instant appeal filed under Section 260A of the Income Tax Act, 1961 (for short "the Act, 1961") is against the order dated 15-7-2003 (Annexure - A/2) passed by the Income Tax Appellate Tribunal (for short "ITAT") in ITA NO. 348/Nag/2001 (Assessment year 1998-99) (The Income Tax Officer, Ward 3, Bhilai v. M/s Dhanush General Stores).

(2.) The appeal was admitted on the following substantial questions of law:

(3.) The facts, in brief, as projected by the assessee, are that the assessee is a partnership firm and, as such, it is assessed. Survey under Section 133A of the Act, 1961 was conducted in the shop premises of the assessee on 27-10-1997. Physical verification of the stock was done and an inventory was accordingly prepared showing excess stock of Rs. 88,918/-. The assessee offered the same for taxation. In the trading and profit & loss account for the financial year 1997-98 the assessee showed an excess stock of Rs. 89,000/- and thereby inflated the gross profit and net profit by that amount.