TMI Blog1988 (12) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... oss profit in the mustard oil and oil-cake accounts. About the gad, the assessee showed the average selling price at about Rs. 25.80 per quintal. The price of cake, on the other hand, was shown at Rs. 48.50 per quintal. The Income-tax Officer did not think that the gad could be sold even below the price of cake. He, therefore, applied the rate of. Rs. 48.50 per quintal to gad also and made the impugned addition. The Appellate Assistant Commissioner confirmed the addition. Before the Tribunal, it was submitted that the yield in gad was higher this year, i.e., in the assessment year 1967-68 as compared to the earlier year 1966-67 when it was only 73 per cent. It was also submitted that no defect in the books of account was found and, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion that the gross profit shown was not reasonable as compared to the earlier two years. It further observed that none of the contentions raised by the assessee could be accepted. It stated that no evidence appeared to have been led before the Appellate Assistant Commissioner in support of the fact that the book result could not be rejected, that besides a bare statement that the books had been properly maintained nothing else was stated and the fact that there was a Government order restricting the rate of profit was also not submitted before the Appellate Assistant Commissioner or before the Income-tax Officer. The Tribunal, in the circumstances, did not allow this point to be taken before it for the first time as, according to it, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thereby worked out an addition of Rs. 67,653. The Appellate Assistant Commissioner supported the order of the Income-tax Officer. With regard to the wage register, he found that for various labourers on certain dates only one person had put his thumb impression against the payment. The unpaid register was produced before him after repeated reminders. He found that this register had been prepared at a stretch only a few days ago before it was produced before him. He also analysed the expenses claimed on electricity charges and found that they were not uniform with reference to the production declared. He, therefore, confirmed the addition of Rs. 67,653. Since the submissions before the Tribunal in the above year were also the same which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r there was any material before the Tribunal in holding that 3 per. cent. gross profit was reasonable. This is essentially a question of fact. The Tribunal has found that the assessee had earned a gross profit of 3.56 per cent. and 3.39 per cent. in the assessment years 1965-66 and 1966-67. The Tribunal has further observed that there was no reason for a steep fall in the rate of profit in view of the rising trend of the prices in the market throughout the period. It adopted a rate of 3 per cent. as gross profit. It is submitted by Mr. Das, the learned advocate for the assessee, that the Tribunal did not take into account that there was a Government order restricting the rate of profit and the profit earned by the brother of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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