TMI Blog2013 (9) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... as been held that measurement of periodic income is, to some extent, a matter of estimation, based on certain acceptable principle of accounting. The computation of business income may differ depending upon the method of accounting employed. It is not the legal position that on identical facts, the same amount of income should be assessable in the cases of all the assessees - Adoption of the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of assessment year 2009-10. 3. The appeal has been preferred by the department on following substantial questions of law:- "(1) Whether on the facts and circumstances of the case, the ITAT has erred in law in setting aside the order of the lower authorities on the issue of rejection of books of account u/s 145 (3), when clear reasoning is given by both the AO and the CIT (A). (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed, it would work out only 0.19% and hence the books of account was rejected and the income of 7% of gross receipts before salary and interest to the partners was proposed to be applied. The CIT (A) confirmed the order of AO. 5. The Tribunal has relied on the judgment of Privy Council in CIT v. Saranpur Cotton Mfg. Co. Ltd (1938) 6 ITR 36 (PC), which has been consistently followed by the Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t profit may vary from year to year. The adoption of the gross profit of account would not depend only upon the net profit. In the present case, from the chart of the gross profit prepared by the CIT (A) in para 2 (a), it is found that the gross profit was increasing progressively from the years 2007-08 to 2009-2010. 7. We do not find any error of law in the judgment of the Tribunal to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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