COMMISSIONER OF INCOME TAX Vs. VANDANA HOTEL, SAGAR

JUDGEMENT

(1.) THIS is revenue's appeal under Section 260A of the Income Tax Act, 1961 calling in question tenability of an order dated 13th of June, 2011 passed by the Income Tax Appellate Tribunal, Indore in the matter of imposition of tax for the assessment year 2004 -05.

(2.) IN the business premises of the respondent/assessee's Santosh Sahu Group of Sagar, certain search and seizure was conducted on 10th of December, 2003. During these proceedings, a hard disc was seized, print out of which yielded, certain particulars of cash books, ledgers and final accounts for the period 1.4.2003 to 31.3.2002 and 1.4.2003 to 5.12.2003, certain sales with regard to restaurant and bar were reflected in these documents.

(3.) THE sale proceeds included sale of liquor and cigarette from the bar of sister concern M/s. Sagar Wines. The assessing officer while passing assessment order added the said sale proceeds of M/s. Sagar Wines to the account of the assessee and on an appeal being filed, the Commissioner Income Tax recalculated the matter and assessed the income at a lower rate. Finally, when the matter went to the tribunal, the tribunal assessed the profit at 10% of the liquor and cigarette sale as reflected in the computer print out. Challenging this order of the tribunal on the ground that the assessing the profit only at 10% is an illegality, this appeal has been filed.