TMI Blog2005 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirming the order of the Commissioner of Income-tax (Appeals) thereby sustaining addition of only Rs. 2,71,104 on the basis of application of gross profit rate even when the Assessing Officer had specific addition of Rs. 66,57,128 and Rs. 8,12,467 respectively on account of sale of kattha and cutch outside regular books of account of the assessee? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in confirming the order of the Commissioner of Income-tax (Appeals) thereby sustaining addition of only Rs. 2,71,104 as against addition of Rs. 66,57,128 and Rs. 8,12,467 made by the Assessing Officer on account of the sale of the assessee? 3. Whether, on the facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. During the course of assessment proceedings books of account, documents and registers properly maintained by the assessee in the course of regular business, were produced. However, the Assessing Officer rejected the books maintained by the assessee under the provisions of section 145(2) of the Income-tax Act on the ground that the assessee has not maintained quantitative records in respect of the kher wood trees on the basis of their weight, though the assessee has maintained complete quantitative details on the basis of the number of trees purchased. The Assessing Officer also worked out the recovery of hart wood and determined the yield at 14.13 per cent. On the basis of the yield so determined, the Assessing Officer determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a large variety of reasons, the yield derived in the past cannot be made the basis for calculating the yield of kattha of future years and, therefore, on the basis of the accounts maintained by the assessee, the Revenue should have accepted the yield shown. Learned counsel for the assessee has also demonstrated the pieces of kher wood to substantiate his argument. It is not disputed that the timber (kher wood) is available in the market in various sizes and therefore, the yield derived from the timber depends on the length, girth and also weight of the timber. The quality of kattha is also different. Under these circumstances, merely on the basis of the number of logs purchased by the assessee, the Assessing Officer could not have, o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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