TMI Blog2002 (2) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... the material on record and after considering the explanation of the assessee, made some additions and rejected the books of account, it cannot be said that he has not applied his mind. In our view, it is not always necessary that every assessee in the line of business should have the same rate of profit. - When the Assessing Officer has considered all relevant material on record, it is basically a question of fact and it cannot be interfered with unless the finding of the Tribunal is found perverse. - we answer the question in affirmative, i.e., in favour of the assessee and against the Revenue. - - - - - Dated:- 15-2-2002 - Judge(s) : Y. R. MEENA., A. C. GOYAL. JUDGMENT On an application filed under section 256(1) of the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been further noticed that the assessment has not been made in haste and that after making the necessary enquiries for assessing the income of the assessee, some additions were made, therefore, it cannot be said that the order of the Assessing Officer was erroneous and prejudicial to the interests of the Revenue. The Tribunal has considered the submissions and has taken the view that merely the low profit shown by the assessee in itself does not render the order erroneous. The Tribunal further observed that the Income-tax Officer had duly considered the explanation furnished during the course of assessment proceedings and also considered the heavy losses in contract work due to competition in the line of business and held that if low G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not seek the sanction of the Commissioner of Income-tax prior to issue of notice under section 147. The Supreme Court in the case of CIT v. Kurban Hussain Ibrahimji Mithiborwala [1971] 82 ITR 821, observed that the requirement of assumption of jurisdiction by the Commissioner pertain to reason of natural justice, Breach of principles of natural justice affect the legality of the order made but does not affect the jurisdiction of the Commissioner. The Federal Court in the case of Chatturam v. CIT [1947] 15 ITR 302, has observed that the assessment on a person who submits his return would be valid notwithstanding that no valid notice or no notice at all might have been issued. They have further observed that: 'the income-tax assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in substance and effect in conformity with or according to the intent and purpose of this Act, such mistakes are capable of correction and would not lead to the conclusion that they are invalid. If we read section 148 along with section 292B, we are of the view that the requirement of the section which was not complied with by the Income-tax Officer is only a mistake capable of correction. The sanction though not obtained prior to the issue of the notice would not lead to the conclusion that the notice was invalid in view of the provisions contained in section 292B especially when the assessee is an existing person and carrying on the business of construction. Since the sanction of the Commissioner of Income-tax under section 151(2) is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the generally accepted results of about 10 per cent. to 12 1/2 per cent. The Income-tax Officer's order which has been reproduced earlier goes to establish that he had in fact carried out such enquiries as he felt necessary and the reading of the order also indicates that he had carried out the examination of the evidence for low tendering in which are at pages 70 to 83 as also extension for carrying out the work granted by the contractors which has resulted in additional expenditure thus leading to low profits. Each assessee's case is distinct and separate from another assessee and merely for the reason that contractors not maintaining the accounts, the profit is assessed at 10 to 12 1/2 per cent. of the receipts, is no ground for invok ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
