RANKA J. - (1.) THE instant Income Tax Appeal under Section 260 -A is directed against the order of the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short the ITAT) dated 31.12.2008 and relates to the Assessment Year 1997 -98.
(2.) THE brief facts as emerging on the face of record are that the appellant -assessee is an Association of Persons (AOP) and is carrying on the business of Indian Made Country Liquor (IMCL) under Rule 67(1) and 67(K -K) of the Rajasthan Excise Rules, 1956 and retail sale of Beer and Indian Made Foreign Liquor (IMFL) under Rule 3A of the Rajasthan Foreign Liquor (Grant of Wholesale and Retail -off sale Licences) Rules, 1982 under exclusive privilege system. The assessee was awarded contract for Khandar group of shops in the district of Sawai Madhopur and was required to lift following quantity of liquor equal to the following contracted amount: - JUDGEMENT_45_TLRAJ0_2014.jpg The assessee filed return of income declaring an income of Rs.90,722/ - and produced in pursuance of notice under Section 143(2), books of accounts, consisting of cash book, ledger, daily sales register, salary register, purchase bills, vouchers for expenses before the Assessing Officer.
(3.) THE Assessing Officer was not satisfied with the way by which the books of accounts were maintained as also non -production of the vouchers mainly relating to sale of the liquor whether country liquor or IMFL or Beer and was of the opinion that when the records have not been properly maintained, therefore, profit cannot be properly deduced from such account and on the basis of such non -maintenance /non -production of the sale vouchers, the sale version, which was on estimate basis could not be accepted and when even the sale version was not open to verification, then the books of account had to be rejected under Section 145(3) of the I.T. Act. It was also observed by the Assessing Officer that though purchases could be said to be vouched but the entire sale version was manipulated. Accordingly, a show cause notice was issued. The assessee -respondent by filing a detailed explanation submitted that the assessee was unable to even lift the entire stock as initially contracted and had to bear the burden of paying penalty for not lifting the entire quantity as it was unable to sell the goods, which it had intended to. In so far as, the non -maintenance/non -production of sale vouchers are concerned, it was admitted by the assessee that sale bills have not been issued at all on the plea that a customer never likes to disclose his identity in the assessee's business and every one is in a hurry and wants to hide his face and, therefore, neither the sale vouchers were demanded nor issued and further the quantity and price of sale of Pouch/Bottlewas so little that it was not feasible to maintain the sale vouchers.;