TMI Blog2006 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... e highest tax payers having income about the minimum level prescribed for a continuous period stated in the Scheme which was contained in the Budget Speech delivered by the Finance Minister on 1.6.1998. The Scheme inter alia carried incentives one of which was that the assessment of Samman Patra Card holders may not be subjected to scrutiny for a period of three years except under very special circumstances and that too after obtaining the prior approval of the Commissioner/Chief Commissioner. 3. In the present case, subsequent to the year of honouring the petitioner-assessee with the Samman Patra, his case was subjected to scrutiny and the finding that the details of sales as well as certain expenses in the books of accounts of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee last year though the assessee has submitted that as for this year he has cogent good grounds to support fall in the GP rate as compared to preceding year. 6. It is in the aforesaid circumstances, this appeal has been preferred by the assessee. In view of the order which we propose to pass, we have not referred to the facts relating to account position and details. The question which was framed at the time of admission of the appeal reads as under : "Whether in the facts and circumstances, keeping in view the additions ultimately made in returned income of the assessee by giving best judgment assessment makes it a case in which by any stretch of satisfaction can be reached that the special circumstances existed which warr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ordinary course. 8. Be that as it may. We are satisfied that in the face of the state in which the accounts have been maintained, it would not be just and proper to interfere with the resorting of the best judgment assessment in the case of the appellant. 9. However, we also find that when the matter is to be considered by the assessing officer de novo, the question of GP rate cannot be subjected to straight jacket formula and it should be left to the assessing officer to consider the material before it, including explanation furnished by assessee about fall in G.P. rate in comparison to previous year or in relation to so called comparable case and reach his own conclusion. To that extent rigid direction to apply particular GP ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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