Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2009 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (11) TMI 269 - HC - Income TaxBest Judgment Assessment- The assessee firm engaged in the business of running a bar hotel. During survey the Department recovered certain account books, price list, etc. A supplier all of whom had confirmed that accounts written were not full and complete and did not reflect the actual receipts on sales. Therefore, the Assessing officer made a best judgment assessment under section 144. The Commissioner (Appeals) held that the statement recorded under section 133A(3)(iii) and no evidentiary value and, cancelled the estimation made by the Assessing Officer and refixed the gross profit at 35 per cent. for the assessment year 1997-98, 1998-2000. In doing so he relied on the fact that in the subsequent assessment even in the assessee’s own case the gross profit assessed was only up to 34 percent. and in comparable cases the gross profit adopted was not as high as the percentage estimated for the three assessment year in the assessee’s case. The Tribunal refixed the gross profit at 40 percent. for the first year, 45 percent, for the next year and 50 percent for the last year. On an application to set aside the ex-parte order and for rehearing, Tribunal reheard the matter and dismissed the Department’s appeals. Held that- allowing the appeals in part, that the Tribunal had not only rejected the statement as having no evidentiary value, but had not even considered the contents of the documents seized were proved through corroborative evidence of the managing partner, the manager and the supplier there was no reason to reject them. For the sake of finality, the gross profit rate estimated by Tribunal in the first round at 40 percent for the year 1997-98 could be applied for all the three years.
|