Commissioner Of Income Tax vs. M/S Phool Singh & Co.

I.T.A.No.59/2011 1 Commissioner of Income Tax Vs. M/s Phool Singh & Co. Jawaharganj Sagar 05/04/2014 Shri Sanjay Lal, learned counsel for the appellant. This is a revenue's appeal under Section 260-A of the Income Tax Act, 1061 calling in question the concurrent orders passed by the Commissioner, Appeals and the Income Tax Appellate Tribunal in the matter of assessment of tax for dealers and assessees engaged in sale of country liquor and Indian made Foreign liquor. For the assessment year in question, the assessee, who had established the business in question, was asked to produce the inspection book, maintained in terms of the exercise law. The assessee did not produce the books or the account, the Assessing Officer called for information from the Excise Department and on the basis of the same, the Assessing Officer estimated sales for the entire year in respect of shops run by the assessee and in the assessment done, the assessee was found to be selling the liquor at the rates above the minimum selling rates fixed by the Government and, therefore, the Assessing Officer estimated the sales in respect of all the shops for the entire 365 days by taking average selling price above the minimum selling price adopted by the assessee. However, when the matter was taken up by the Commissioner Appeals and thereafter, by the Tribunal, the Tribunal interfered into the matter and reduced the addition to some extent, the Tribunal decided the matter of addition in the following manner ; “24. ..................... We can reasonably apply the same to 5% of tatal 365 days, which works out to be 18 days (5% of 365 days). Thus, we modify both the orders of the lower authorities and restrict the additions accordingly in respect of all the assessees as discussed herein above. 25. In the result, all the appeals of the Revenue are allowed in part in terms indicated above.” I.T.A.No.59/2011 2 Commissioner of Income Tax Vs. M/s Phool Singh & Co. Jawaharganj Sagar Challenging the aforesaid, this appeal has been filed and the prayer is that the original addition made by the Assessing Officer be upheld. Similar action was taken in the case of another liquor dealer i.e. M/s Brindawan Rai & Co. and the question involved in this appeal identical in nature was considered by a coordinate bench of this Court in an appeal filed by the Revenue under Section 260A in I.T.A.No.57/2011 (Commissioner of Income Tax, Jabalpur Vs. M/s Brindawan Rai & Co.) and after considering various aspects of the matter, by a detailed order, similar findings recorded by the Income Tax Appellate Tribunal have been upheld. As similar and identical orders passed by the Income Tax Appellate Tribunal in the case of another dealer M/s Brindawan Rai & Co. have already been upheld by a coordinate bench of this Court in I.T.A.No.57/2011, we see no reason to interfere into the matter now, as the similar orders passed have already been upheld by this Court. Accordingly, on the grounds and reasons indicated by a bench of this Court in I.T.A.No.57/2011, we see no ground to interfere into the matter. The appeal is, therefore, dismissed. (Rajendra Menon) (Anil Sharma) Judge Judge nd