IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 16TH FEBRUARY 2011 / 27TH MAGHA 1932 ITA.No. 14 of 2011() -------------------- AGAINST THE ORDER DATED 09/08/2010 IN ITA.952/COCH/2008 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT: ----------------------------------------- THE COMMISSIONER OF INCOME TAX-II, COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT: ------------------------- M/S.EDAPALLY TRADERS, NEAR BYE PASS ROAD, MAROTTICHODU EDAPALLY, COCHIN-24. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ALONG WITH I.T.A. NO.23/2011 ON 16/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. .................................................................... I.T. Appeal Nos.14 & 23 of 2011 .................................................................... Dated this the 16th day of February, 2011. JUDGMENT Ramachandran Nair, J. Heard Senior Counsel appearing for the appellant. The only issue raised is whether the value of unaccounted sale of scrap made by the assessee detected by the Sales Tax Department with reference to Check Post registers maintained by it should be treated as unaccounted income of the assessee. Senior counsel has relied on Division Bench decision of this court in COMMISSIONER OF INCOME-TAX VS. G.ANANDARAJAN reported in 228 ITR 664. However, we notice that the C.I.T.(Appeals) as well as the Tribunal took the view that when unaccounted sale is noticed, the assessee ought to have incurred expenditure for purchases and other expenses and, therefore, only the profit could be assessed to tax. The material involved in this case is scrap iron and the same is necessarily purchased from the market and so much so, we do not find anything wrong in the conclusion of the lower authorities that assessee's gain is only profit on purchase and 2 sale. Consequently we do not find any question of law arising from the orders of the Tribunal. Accordingly the appeals are dismissed. C.N.RAMACHANDRAN NAIR Judge BHABANI PRASAD RAY Judge pms