T And D Petro Services Vs ITO (ITAT Panaji)
Assesse being a partnership firm, engaged in the business as dealer in petroleum products who filed its return at Rs.3,00,950/-. Subsequently the case was selected for limited scrutiny. AO found excess provision of Rs. 4500/- in the current liabilities in balance sheet, which was disallowed. AO, further, found that assessee has not made entry of petrol and diesel to the extent of 15000 litre in the stock register of motor spirit, on the three occasions. In lack of supply of information AO made addition of suppression of sales valued at Rs.8,85,326/- and finally assessed the total income of Rs.11,90,778/-.
On appeal CIT (A) partly allowed the appeal and sustained balance of Rs.8,64,744/-.
On appeal before ITAT, it was submitted that AO has not doubted the genuineness of claim of expenditure/ purchases but has made addition in the absence of entries in the stock register but in the end of the year, the transactions were rectified, and the quantitative details of purchases and sales are tallied. Invoice copy of motor spirit and daily record of quantity of stock were placed on record. the gross profit margin/element in the motor spirit I.e Diesel & Petrol business range between 2% to 3% and both the revenue authorities did not consider the facts.
