RAMESHWARLAL SEWDATRAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Messrs Rameshwarlal Sewdatrai, the assessee, is a partnership firm. It carries on business in grocery at Kalna in the Burdwan District of West Bengal. The assessee was assessed to income-tax in the assessment year 1970-71, the accounting year ending on April 14, 1970. In the proceedings for the assessment, the Income-tax Officer detected certain defects and irregularities in the accounts in respect of transactions of the assessee relating to sugar. It was found that the assessee had disclosed purchases of sugar one day before the closing of the accounting period and also that the assesse had not shown any closing stock at the end of the accounting year. It was also found that up to a certain point in the accounting year, the assessee had sold certain quantity of sugar in respect of which no purchases were disclosed nor was any opening stock shown. The Income-tax Officer came to the conclusion that the goods purchased had been suppressed and that the sources for the purchases had not been disclosed. He came to the conclusion that the assessee had suppressed profits in its accounts which he estimated to be Rs. 9,200. The Income-tax Officer also estimated profits in respect of other transactions of the assessee at a higher rate on a turnover higher than that disclosed by the assessee and estimated the profits.

(2.) In view of the additions to the income in the assessment, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner for levy of penalty.

(3.) The assessee preferred an appeal against the assessment before the Appellate Assistant Commissioner who upheld the assessment of the Income-tax Officer. The assessee did not pursue the matter any further.