COMMISSIONER OF INCOME TAX Vs. SANTHOSH TEXTILES

JUDGEMENT

(1.) WE will answer the following two questions :

(2.) THE assessment year is 1974 75 in regard to which the assessee M/s Santosh Textiles, Cannanore filed return on 30th Sept., 1974. The total income of Rs. 80,780 was shown therein. On 7th Dec., 1974 the ITO while examining the accounts noticed at page 154 of the ledger an item of sale of Rs. 70,642 which took place on 1st Jan., 1974 and was not included in the total struck in regard to the accounts.

(3.) IN the scrutiny of accounts which were given to the auditors as stated above, it was found that entries relating to excess credits and debit related to 44 items and this resulted in the filing of a revised return on 19th March, 1975. This revised return was accompanied by a P&L a/c as well as Balance Sheet. The material showed total income of Rs. 1,13,589. On the basis of the material, the ITO completed the assessment on 31st March, 1975 in regard to total income of Rs. 1,14,290. The order shows that simultaneously penalty proceedings were initiated by referring the matter to the IAC.