Chennai Court July 1975 Judgments

Commissioner of Income-tax Vs. K. Arunachala Mudaliar

Court: Chennai

Reported in: [1976]105ITR811(Mad)

Sethuraman, J.1. This reference has been made at the instance of the Commissioner of Income-tax on the following facts. The assessee owns a rice mill. He purchases paddy, hulls them and sells the rice. He hulls paddy for hire also. In the relevant previous year which ended on 13th April, 1960, he showed in his books Rs. 1,25,736 as sales. The Income-tax Officer had information from the commercial tax authorities that certain transactions in rice with N. V. Vadivel Mudaliar & Co., Kancheepuram, had been totally left out of the assessee's books. The total of the transactions with the said firm amounted to Rs. 1,38,811. In the corresponding sales tax assessment, the sales tax authorities enhanced the turnover to this extent and the addition was confirmed by the Sales Tax Appellate Tribunal. The transactions as reflected in the books of N. V. Vadivel Mudaliar thus represent sales of goods to them. The Income-tax Officer in making the assessment now under consideration added 10% as the prof...