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3. The brief facts of the case are that the assessee filed its return of income for the A.Y.2004-05 declaring total income as Rs. Nil on 12.10.2004. The return was processed u/s.143(1) of the Income Tax Act, 1961 (in short "the Act"). The case was selected for scrutiny, therefore notice u/s.143(2) of the Act was issued on 26.08.2005 which was duly served upon the assessee. Further notice u/s.143(2) of the Act was issued on 13.09.2006 which was duly served upon the assessee on 19.09.2006. Since assessee was not responsive, therefore final notice u/s.143(2) of the Act was issued on 27.11.2006 along with certain requirements and show cause notice u/s.271(1)(b) of the Act for non compliance to the notice u/s.143(2) of the Act was also issued. The said notice was served upon the assessee on 28.11.2006. The assessee was in the business of sales and service of the computer systems and peripherals, sale of multi function devices, printers and scanners etc. On verification of the manufacturing account submitted by the assessee, it was found that the assessee shown sales amounting to Rs.34,76,379/- for the A.Y.2003-04. However, as per A.Y.2004-05 the details of the partywise sales above Rs.10,000/- submitted by the assessee the total sales comes to Rs.36,68,404/-. However, the assessee explained about the inclusion of the service charges but failed to explain the difference of sale to the tune of Rs.1,92,025/-. The assessee also filed an application u/s.154 of the Act on 18.01.2007 and the revised difference was filed to the tune of Rs.1,53,270/- which was not explained, therefore notice u/s.271(1)(c) of the Act was issued and after getting reply the penalty to the tune of Rs.73,130/- was levied. Feeling aggrieved the appeal was filed before the CIT(A) who confirmed the order of the Assessing Officer, therefore the assessee has filed the present appeal before us.