INCOME TAX DEPARTMENT Vs. SHANKAR DASS BALRAM KUMAR

JUDGEMENT

(1.) This is an appeal filed by the appellant/Income Tax Department under Section 378(4) of the Code of Criminal Procedure against the judgment of the Court of learned Chief Judicial Magistrate, Una dated 2.5.2003 whereby the respondents have been acquitted in a complaint filed against them under Section 276(C) of the Income Tax Act, 1961.

(2.) Briefly stated, the facts of the case as alleged, are that the respondents are partners of firm M/S Shankar Dass, Balram Kumar, Jhalars, District Una and are running a Karyana Shop in the village Jhalars. On 2.8.1982, the Enforcement Wing of the Sales Tax Department conducted an inspection of the business premises of the respondents and impounded the books of accounts and loose Whether the reporters of Local Papers may be allowed to see the Judgment? Yes. documents. These were thereafter were impounded by the Assessing Officer under Section 132 of the Income Tax Act. On close examination of the seized records, the Assessing Officer found that the respondent was recording all the purchases and some of which were taken to the regular books of accounts and some of which were not recorded in the regular books of accounts. The Assessing Officer tallied the purchases as per the said purchase book "Bahi" and as per the regular books of accounts for the period from 1.4.1982 to 2.8.1982, he found that the purchases to the extent of Rs.2,48,499/- were not recorded in the regular books of account. The total sales as per the sale book were Rs.43,34,401/- and out of which sale of Rs.23,94,826/- had been recorded in the regular books of account and the balance sales of Rs.19,39,575/- had not been recorded in the regular books of accounts. Various receipts of payments received from different parties were not recorded in the regular book of accounts. The Assessing Officer estimated the sales for the period from 1.4.1982 to 2.8.1982 at Rs.47,50,000/- as against the sale of Rs.23,94,826/-. The Assessing Officer applied gross profit rate and worked out the addition of Rs.51,813/-.

(3.) On appeal, the Commissioner, Income Tax reduced the estimate of sale from Rs.47,50,000/- to Rs,40,0000/- and upheld the addition to the extent of Rs.33,710/-. The Income Tax Appellate Tribunal upheld the order passed by the Commissioner Income Tax. The Assessing Officer thereafter after affording afforded an opportunity to the respondent, imposed a penalty of Rs.22,248/- under Section 271-(I)(C) of the Income Tax Act.