TMI Blog1967 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... tmental authorities. - - - - - Dated:- 19-1-1967 - Judge(s) : S. C. MANCHANDA., M. H. BEG. JUDGMENT MANCHANDA J.- This is a case stated under section 66(2) of the Income-tax Act 1922 (hereinafter referred to as the Act). The two questions referred are : " 1. Whether, in the circumstances of the case, the application of the flat rate of 5% was justified when in the case of another dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods purchased and sold either by V. P. P. or railway was produced. No other accounts in the shape of cash book, ledger, etc., were maintained. In these circumstances, the proviso to section 13 of the Act was applied. The Income-tax Officer estimated the sales at Rs. 2,50,000 on which a flat rate of 5% was applied. In applying this rate the Income-tax Officer took into consideration the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered to be a comparable case. Thereupon the Tribunal directed the departmental representative to obtain the record of that case. At the hearing it seems no reference to that case was made by the assessee for the reason best known to him. The Tribunal did not consider that any interference with the rate of 501, was called for. It was mentioned that most of the sales were " invoice sales ", whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income the conditions of trade obtaining and the average margin of profit in the particular line of business are to be borne in mind. It is clear that these factors in the present case have been kept in view and, therefore, it is not possible to say that the estimate of income was arbitrary or capricious to justify holding that some error of law had been committed by the Tribunal in confirming the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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