Punjab Sind Dairy v. Dy. CIT

INCOME TAX ACT, 1961

--Assessment--Rejection of books of accountFailure to produce registers indicating production, issuance and consumption----Where assessee had failed to produce the registers indicating production, issuance and consumption of milk, AO was justified in rejecting books of account as quantities of sale of milk reflected therein were not supported by evidence.--Assessee was engaged in manufacturing and milk products. There was a search and survey at the residential as well as business premises of director/related persons of the assessee. Consequently, a notice under section 153A was issued. In response, assessee filed its return showing that quantities of sale of milk reflected in its books of account were not supported by evidence. AO rejected the assessee's books of account under section 145(3) on the ground that Production Register containing particulars of issuance and consumption was not maintained. Held: Assessee had failed to produce the registers indicating production, issuance and consumption. Thus, rejection of books of account for the relevant assessment years was correct.