ASSTT. CIT-6 Vs. RAJSTHAN LIQUORS PVT. LTD.

JUDGEMENT

(1.) THIS appeal is preferred by the Revenue against the order of the ld. CIT(A), inter alia, on the following grounds: - -

(2.) THAT the order of the Ld. Commissioner of Income Tax(A) -l Kanpur being erroneous in law and on facts deserves to be vacated and the order of the Assessing Officer be restored."

(3.) SIMILAR is the position with the bottling unit at Derabasi, Punjab, with respect to which it was contended that the assessee -company has declared bottling charges from Radico Khaitan Limited. Sales and purchases and other manufacturing expenses have been booked in the accounts of the assessee as per the requirement of the State Excise Law, but the receipts of the company stand only on the account of bottling fees received. The profitability statement of Derabasi Unit was filed by the assessee. On account of non -preparation of separate profit and loss account and balance sheet for Derabasi unit, the Assessing Officer concluded that administration expenses claimed were not verifiable. The claim of bottling charges received from ADBL Limited and the sales, purchases, other manufacturing expenses, office expenses, etc. though booked in the books of account of the company, but was not accepted by the Assessing Officer for the reason that separate balance sheet and profit and loss account was not prepared. On account of non -preparation of separate balance sheet and profit and loss account, the Assessing Officer has rejected the books of account under section 145(3) of the Act and made ad hoc addition of Rs. 20 lakhs having observed that the assessee has inflated the expenses.