M/S. Premier Distilleries Ltd., ... vs Dcit, Pondicherry on 14 June, 2018
10. We have considered the rival submissions carefully. It is quite evident
from the orders of the authorities below that some of the contents of the
impugned seized document tallied with the regular account books of the
assessee. Quite clearly, the assessee was expected to explain the contents of
the document. The explanation rendered by the assessee that it was only rough
notings is too general and vague, and, therefore, considering the entire gamut of
facts and circumstances, the Assessing Officer was justified in treating the
amount of Rs 3,78,800/- as unrecorded sales. However, the alternative plea of
the assessee that only the profit element should be assessed instead of the
gross amount of sale, is acceptable. There is no justification to treat the gross
amount of sale as income, and this is in line with the decisions of our co-ordinate
Benches in the cases of Ajinkya Electromelt (P) Ltd. (supra) and Gurubachhan
Singh J. Juneja (supra). Thus, we delete the addition of Rs 3,64,974/- enhanced
by the Commissioner of Income-tax (Appeals) and retain the addition of Rs
13,826/- made by the Assessing Officer. Accordingly, the order of the
Commissioner of Income-tax (Appeals) is set aside and the Assessing Officer is
directed to retain an addition of Rs 13,826/- only. Thus, on this Ground assessee
partly succeeds.