TMI Blog2008 (4) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... ks of account is not justified and based on irrelevant consideration. It is not in dispute that in the manufacturing of Biri there is involvement of labourers. The labourers are normally illiterate, as observed by the Tribunal and 2/3rd amount of the expenditure were incurred in the payment of labours wages. In these circumstances, the preparation of self made vouchers by the assessee cannot be said to be against the trade practice and method of accountancy. The assessee had no other option but to prepare self made vouchers to prove the expenditure incurred for the payment of labour wages. It is claimed by the assessee that in the vouchers the name and address of the labours, the amount paid, the date etc. were mentioned. The signature o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1993-94 and 1994-95. 2. The brief facts of the cases giving rise to the present appeals are that the appellant (hereinafter referred to as the assessee ) was a registered firm and running the business of manufacturing and sale of Bidi with trademark as Nisar Biri Sikka No. 1. 3. For the assessment year 1993-94, the assessee had filed return showing income of ₹ 15,314. The disclosed sale of Bidi was at ₹ 75,18,825 and the gross profit rate was shown at ₹ 4,62,635 and the percentage of gross profit was 6.15 per cent. The Assessing Authority has accepted the sale figure but rejected the books of account after applying the provisions of section 145(1) of the Act and applied gross profit rate of 10.5 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the facts and circumstances of each year. He further submitted that in the assessment year 1992-93 the addition was made on the ground that some discrepancies were found in the stock. 6. Learned Standing Counsel relied upon the order of Tribunal and submitted that since the payments were not verifiable, therefore, the provisions of section 145(1) of the Act is applicable. He further submitted that in the case of M/s. A.M. Mazdoor Biri Co. involved in the manufacturing of Biri higher gross profit rate had been applied while in the case of assessee gross profit rate at 8.5 per cent has been applied. 7. Having heard learned counsel for the parties we have gone through the impugned order and the order of the authorities below. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the assessment year 1992-93 the gross profit rate of 10.5 per cent was applied while the assessee has disclosed the gross profit of 6.69 per cent. The assessee has challenged the reopening of the proceedings on the ground that on the basis of the order of Tribunal for the assessment year 1992-93 the case cannot be reopened in the absence of any specific material for escapement of income. Before the Tribunal the assessee has specifically raised the arguments in this regard, which is mentioned in para 14 of the Tribunal s order. The perusal of the Tribunal order reveals that such plea has not been adjudicated. 11. In these circumstances, we are of the view that the order of Tribunal is vitiated and liable to be set aside. The case is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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