LAWS(P&H)-2006-12-97

FATHUDHINGA RICE MILLS Vs. COMMISSIONER OF INCOME TAX

Decided On December 12, 2006
Fathudhinga Rice Mills Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) THIS appeal has been preferred under s. 260A of the IT Act, 1961 (for short "the Act") proposing the following in ITA No. 548/Asr/1999 in respect of the asst. yr. 1993 -94 :

(2.) THE assessee had filed return showing the income of Rs. 8,570 for the asst. yr. 1993 -94, which was processed under s. 143(1)(a) of the Act. During the search and seizure operation at the business premises of the assessee, certain incriminating documents were found and the case was taken thereafter for scrutiny and notice under s. 148 of the Act was issued to the assessee.

(3.) THE AO made addition on account of unaccounted sale of rice as was found to be entered in the note book (Annex. A6). It was also found entered in the note book that truck No. PBK -5177 and PCJ -5177 were used for sale of the rice and the said trucks belonged to the assessee. The AO examined the peak of the daily sale and on that basis calculated the profit. Another diary entry annex. A7 was also found which contained entries in respect of the unexplained investment. The CIT(A) while rejecting the prayer for permitting the appeal to be withdrawn issued notice for enhancement and made further enhancement to the addition. On appeal, the Tribunal upheld the order of the CIT(A). The relevant findings recorded by the Tribunal are as under :