RAMESHWAR LAL MALI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal under Section 260A of the Income-tax Act, 1961, is preferred by the assessee against the order of the Income-tax Appellate Tribunal, Jodhpur Bench, dated March 3, 2000, with respect to the assessment year 1993-94.

(2.) THE appellant-assessee is running a shop in the name of Kishan Mishthan Bhandar engaged in manufacture and sale of sweets and namkeen. A survey was undertaken under Section 133A of the Income-tax Act of the shop as well as the factory premises by the income-tax authorities on December 5, 1995. THE books of account of the appellant were impounded in accordance with the provisions of Section 131 of the Income-tax Act. THE Sales Tax Department also conducted a survey independently at the premises of the assessee on February 15, 1995. THE assessing authority observed a number of defects in the books of account maintained by the appellant such as non-maintenance of stock register, purchase and sales were not fully vouched, lumpsum payments were made to the labourers, wage register not maintained. On scrutiny of impounded documents, it was found that certain entries were not verified. Relying on specific defects, the Assessing Officer invoked the provisions of Section 145(2) of the Income-tax Act after giving specific opportunity to the appellant. THE appellant was confronted with the entire material before the assessing authority. THE Assessing Officer on the basis of the record and the statements of the various karigars and salesmen made the addition to the trading results declared by the assessee. THE assessing authority completed the assessment under Section 143(3) of the Income-tax Act. THE appellant preferred an appeal against the order of the assessing authority before the Commissioner of Income-tax (Appeals), Bikaner. THE Appellate Commissioner reduced the estimation of sales and also the gross profit to a great extent. THE appellant-assessee preferred a further appeal to the Income-tax Appellate Tribunal. THE Appellate Tribunal considered all the contentions raised in depth and detail. THE Appellate Tribunal dismissed the appeal by a well reasoned judgment dated March 3, 2000.