TMI Blog2007 (10) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... 55(JAB)/2002 and I. T. A. No. 62 (JAB) 2002 which relate to the assessment year 1997-98. The appeal was admitted for hearing on the following questions of law : "(i) Whether, in the facts and circumstances of the case, the Tribunal was correct in law in holding that the entire sales were liable to be assessed as income even when the purchases were recorded in the books of account ? (ii) Whether the learned Tribunal is legally correct in not deleting the addition of Rs. 1,00,000 on the facts of the case even after recording a finding that cash was brought from home but treating it covered by the addition of undisclosed sales ?" 3. As far as the first substantial question of law is concerned, it is submitted by learned senior counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment in the case of Balchand Ajit Kumar's case [2003] 263 ITR 610 (MP) is reproduced below for properly appreciating the contention of learned senior counsel for the appellant (page 612) : "On appreciating the rival submissions raised at the Bar, we have carefully perused the order passed by the Commissioner of Income-tax (Appeals) and also that of the Tribunal. It is not disputed that the undisclosed income was Rs. 2,57,000. The sole question that arises for consideration is whether the entire income has to be treated as profit or there should be adoption of a method of net profit income. In the case of CIT v. President Industries [2002] 258 ITR 654, the High Court of Gujarat in a similar matter came to hold as under (pag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted, it cannot be said that there is perversity of approach. Whether the rate is low or high, it would depend upon the facts of each case. In the present case, the net profit rate of five per cent. has been applied. We do not think it appropriate that the same requires to be enhanced. We are also inclined to think that it is high. In any case, it cannot be said that there has been perversity of approach." 5. From a perusal of the aforesaid dicta of this court, it is apparent that this court while deciding the matter has held that the total sales cannot be regarded as profit of the assessee and the net profit rate which was adopted in that case has to be adopted and if it is so adopted it cannot be said that the approach of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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