Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 135 - HC - Income TaxG.P. estimation - whether on the facts and circumstances of the case, there is implied limitation of no enhancement beyond earlier assessed income in the direction of the Tribunal to apply proper and reasonable GP rate? - Held that:- It is evident that returns of income of Assessment Year 1986-87 were not available before the CIT(A). However, the Gross Profit rate was computed with reference to the returns of the subsequent Assessment years i.e. 1989-90 to 1991-92. Thus, there was no positive evidence before the CIT(A) to assess the Gross Profit rate. ITAT however fail to appreciate the aforesaid aspect of the matter. ITAT ought to have appreciated that only reasonable and proper gross profit rate was to be applied and the appellant was the only dealer who had entered into bulk purchases of timber with State Forest Corporation. Merely because M/s JaswantRa iArora deals in timber, it could not have been put in the category of similar dealers as it has not made bulk purchases of timber with State Forest Corporation. The returns of the subsequent years i.e. 1989-90 to 1991-92 could not have been taken into account for computing the gross profit rate in respect of Assessment Year 1986-87. Thus, the finding with regard to gross profit rate is based on surmises and conjectures and in fact has been arrived at in contravention of the directions contained in the order dated 31.08.1999 passed by the ITAT.
|