COMMISSIONER OF INCOME TAX Vs. EDAPALLY TRADERS

JUDGEMENT

(1.) HEARD Senior Counsel appearing for the Appellant. The only issue raised is whether the value of unaccounted sale of scrap made by the Assessee detected by the Sales Tax Department with reference to Check Post registers maintained by it should be treated as unaccounted income of the Assessee. Senior counsel has relied on Division Bench decision of this Court in Commissioner of Income Tax v. G. Anandarajan : 228 ITR 664. However, we notice that the C.I.T.(Appeals) as well as the Tribunal took the view that when unaccounted sale is noticed, the Assessee ought to have incurred expenditure for purchases and other expenses and, therefore, only the profit could be assessed to tax. The material involved in this case is scrap iron and the same is necessarily purchased from the market and so much so, we do not find anything wrong in the conclusion of the lower authorities that Assessee's gain is only profit on purchase and sale. Consequently we do not find any question of law arising from the orders of the Tribunal. Accordingly the appeals are dismissed.