2003 (5) TMI 13

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..... in the previous year – Tribunal found that it was a case where the books of account have rightly been rejected by the Assessing Officer - instead of applying a flat gross profit rate, a lump sum addition of Rs. 2 lakhs has been sustained by taking into consideration the relevant trading result shown by the assessee - Finding reached by the Tribunal is a finding of fact on appreciation of relevant .....

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..... e gross profit rate shown in the previous year. These two grounds led to the satisfaction of the Assessing Officer that the books of account did not disclose the true and correct state of affairs and the correct results. After rejecting the books of account, he resorted to section 145(2) of the Income-tax Act, 1961, to make a best judgment assessment and applied a gross profit rate of 28.99 per .....

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..... shown by the assessee himself to be 48 per cent, over the previous year sales; and increase in the cost of raw material without corresponding increase in the sale price; has held that in the facts and circumstances under best judgment the result shown by the assessee requires to be increased. However, instead of applying a flat gross profit rate, a lump sum addition of Rs. 2 lakhs has been sustain .....

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