TMI Blog1976 (7) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year relevant for the assessment year 1961-62 ? 2. Whether the peak credit of Rs. 46,500 should be treated as having come out of the intangible addition of Rs. 53,000 made in the earlier year's assessment ? The short facts that give rise to these questions are as follows : The petitioner herein is a dealer in paddy and rice having his head office at Coimbatore and branches at Singarampalayam and Palghat. For the assessment year 1961-62, the turnover was Rs. 13,87,087 and the gross profit shown by the assessee was less than 2%. The Income-tax Officer found that the gross profits disclosed by the assessee was prima facie low, having regard to the nature of the business and the trading conditions and that the books were absolute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the gross profit at 3.5% on sales of Rs. 14,00,000 and added Rs. 24,210 to the income returned by the assessee. Against this order of the Appellate Assistant Commissioner, the department as well as the assessee preferred appeals. The assessee wanted to have this addition of Rs. 24,210 deleted, and the department wanted to have the addition of Rs. 46,500 restored. The Tribunal by its final order dismissed the appeal preferred by the assessee-petitioner and allowed the appeal preferred by the department. It is the correctness of this decision of the Tribunal which is sought to be challenged in the form of the questions referred to above. The learned counsel for the petitioner contends that the decision of this court in S. Kuppuswami Mud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investments came to be made out of the income in the previous years. In addition, the loans and investments were made in the names of himself and his wife and big married daughter. It is in that background this court held that the Income-tax Officer and the Tribunal should have held that the loans and investments came out of the income of Rs. 52,230. In the present case, the facts are entirely different, and certainly differ from the reported case in two principal points. One is that, in the reported case, the entire sum of Rs. 52,230 made by way of addition was available for advancing as loan and investment. In the present case, the assessee for the year 1960-61 had returned a loss of Rs. 43,591 and the Income-tax Officer added to the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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