TMI Blog1981 (4) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 256(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act") and has referred the following question for opinion of the court: "Whether, on the facts and in the circumstances of the case, the revenue is justified in rejecting the books of account of the assessee and proceed to estimate the sales as also the rate of gross profit ? " The year of assessment is 1974-75, ending wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gross profits were found to be Rs. 92,713 as against Rs. 73,570. The rejection of accounts was upheld in appeal by the AAC as also the Tribunal. The Tribunal, however, reduced the estimates. The small addition in the turnover is not seriously disputed before us by Mr. Mohanty for the assessee. It is, however, contended that there was no justification for estimating gross profits from handloom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO to discard the book results of loss and to fall back upon past records, Since the assessment of gross profit is within reasonable limits, supported by records of the assessee itself in respect of other years, we do not think, the assessee is justified in challenging the action of the revenue. There may be some force in the assessee's contention that day-to-day stock tallying becomes difficult ..... X X X X Extracts X X X X X X X X Extracts X X X X
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