VICTORY MILLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal has been preferred under s. 260A of IT Act, 1961 (hereinafter referred to as "the Act") proposing following Bench (hereinafter referred to as "the Tribunal") passed in ITA No. 155/Chd/1999 in respect of asst. yr. 1995 -96 : "Whether under the facts and circumstances of the case, the Tribunal was justified in reversing the findings of the CIT(A) who had deleted the addition of Rs. 1,49,557 made by assessing authority which was based on no evidence or material to prove any excess price as alleged was charged by the appellant for recorded sales and hence the findings of Tribunal are perverse -

(2.) AS a result of search on the business premises of M/s Partap Bhangu Solvex (P) Ltd., village Pasiana, a diary showing unaccounted purchases from various concerns, including the assessee was seized. On being confronted with the said material, the assessee surrendered unaccounted income of Rs. 4 lacs. During the assessment the AO made additions to the declared income holding that the assessee had under -billed transactions and its books of account were not reliable. The addition represented difference in declared sale price and the actual sale price.

(3.) THE CIT(A) set aside the additions but the Tribunal restored the same. Dispute surviving in this appeal relates to addition of Rs. 1,49,557. In this regard, the Tribunal observed :