Sending monthly sales figures hurriedly by 10th of every month is not a genuine reason for declaring lower sales

The Income Tax Appellate Tribunal has ruled that hastily submitting monthly sales figures by the 10th of each month is not a genuine justification for reporting lower sales. In this case, an assessee's appeal was partly allowed, but the tribunal noted that a discrepancy in sales figures between VAT returns and trading accounts led to an addition to total income. The tribunal also condoned a minor delay in filing the appeal.

IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE “SMC-A” BENCH, BANGALORE
Before Shri George George K, Judicial Member
ITA No.917/Bang/2019: Asst.Year 2015-2016

M/s.Holebasaveshwar Petroleums
NH 13. Muttagi Cross, Golasangi
Tq.basawan Bagewadi
Vijayapura.
PAN : ABDFS6995E.

vs

The Income Tax Officer
Ward 3
Vijayapura

Appellant by : Sri.Pranav Krishna, Advocate
Respondent by : Sri.Ganesh R.Ghale, Standing Counsel
Date of Hearing : 16.09.2021
Date of Pronouncement : 20.09.2021
O R D E R

This appeal at the instance of the assessee is directed against the CIT(A)’s order dated 29.01.2019. The relevant assessment year is 2015-2016.

2. There is a delay of 8 days in filing this appeal before the Tribunal. The assessee has filed a condonation petition along with an Affidavit, stating therein the reasons for the belated filing of this appeal. I have perused the reasons stated in the affidavit for belated filing of the appeal. I am of the view that there is sufficient cause for filing this appeal belatedly and no latches can be attributed to the assessee. In the facts and circumstances of the case, I condone the delay for 8 days and proceed to dispose of the appeal on merits.

3. During the course of assessment proceedings, the Assessing Officer noticed that total sales shown in the VAT return filed is Rs.9,44,01,977 whereas, the total sales as per the trading account of the assessee was only Rs.9,33,04,665. The A.O. directed the assessee to reconcile the difference. In absence of any reply from the assessee, the excess sale of Rs.10,97,132 was added to the total income.

4. In the result, the appeal filed by the assessee is partly allowed.
Order pronounced on this 20th day of September, 2021.

Please find attached the enclosed file for the full judgement