COMMISSIONER OF INCOME TAX Vs. G ANANDARAJAN

JUDGEMENT

(1.) FOR the asst. yr. 1981-82 with reference to the accounting year ending on 1st April, 1980 both the ITO as well as the first appellate authority acting under S. 69 of the IT Act, 1961 added an amount of Rs. 1,72,761 and taxed the assessee accordingly. However, the Tribunal deleted the said addition requiring the Revenue to approach us to expect answers to the following questions :

(2.) AS stated above, the accounting year commenced on 1st April, 1980. The opening balance was shown as Rs. 18,962, with regard to the two shops of the assessee who is a wholesale dealer in liquor shops. When this was the position it was seen that on 1st April, 1980 the assessee had sold liquor to the tune of Rs. 2,00,361. Obviously if this was so those required explanation in regard to the amount from which the sales were realised in view of the daylight position that for selling, one must lawfully purchase and if one lawfully purchases there has to be an account to explain properly the transaction of sale to the tune of Rs. 2,00,361.

(3.) IN view of this situation, the ITO held it to be beyond doubt that the assessee has sold liquor in excess of the quantity available with him as per the books of account and records.