JAYTICK INTERMEDIATES P. LTD Vs. THE ACIT

JUDGEMENT

(1.) By way of Tax Appeal No.1196 of 2007, the assessee has challenged the order of the Income Tax Appellate Tribunal, Ahmedabad Bench "B", Ahmedabad, (For short, "the Tribunal") in ITA No.1384/Ahd/1998 dated 12.1.2007, whereby the Tribunal has reversed the order of the CIT (A) and confirmed the order of the Assessing Officer.

(2.) At the time of admitting this Appeal, following question of law was framed: -

(3.) Mr.B.S.Soparkar, learned advocate for the appellant submitted that the AO has proceeded on the basis that the assessee has not maintained day -to -day stock register and there are serious discrepancies in the stock register. He contended that the AO has wrongly assessed the income on the basis of the stock register, as there were differences as compared to the audited books of account. He submitted that the estimated gross income is wrongly assessed. He further submitted that this order of the AO was carried in appeal before CIT (Appeals), who observed as under: -