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Issues:
1. Justification of gross profit addition for assessment year 1991-92. 2. Validity of estimating gross profit at 4.5% without basis. 3. Applicability of the same yardstick for multiple assessment years. 4. Rejection of appeal regarding gross profit addition. Analysis: 1. The primary issue in this case revolves around the justification of the gross profit addition for the assessment year 1991-92. The assessing authority conducted a survey under Section 133A in the business premises due to the assessee not filing any return of income for almost a decade. The authority, upon scrutiny, found the gross profit adopted by the assessee at 3.98% to be unreasonably low for a wholesale liquor business. Consequently, the authority increased the gross profit rate to 4.5%, resulting in an addition of Rs. 87,277. The CIT(A) upheld this decision, emphasizing the low gross profit rate maintained by the appellant over multiple years and the lack of cooperation in maintaining proper accounts. The Tribunal also supported this view, dismissing the appellant's contention and sustaining the addition made by the authorities. 2. The second issue questions the validity of estimating the gross profit at 4.5% without any stated basis or material. The Tribunal, while considering the appellant's argument that the same yardstick should be applied for multiple years, referred to various legal precedents. However, the Tribunal found no justification in adopting the same standard for different assessment years, especially given the circumstances of the case where the appellant had not maintained defect-free accounts and only filed a return after a significant delay. The Tribunal concluded that the assessing authority's decision to enhance the gross profit rate was based on factual considerations and did not find any illegality in the order. 3. A critical aspect of the judgment relates to the applicability of the same yardstick for different assessment years. The Tribunal rejected the appellant's request to apply the same yardstick used for the assessment year 1991-92 to other years, including 1990-91. The Tribunal highlighted the unique circumstances of each year, such as the delayed filing of returns, lack of cooperation, and historical issues with maintaining proper accounts. These factors led the Tribunal to conclude that the assessing authority's decision for the years 1990-91 and 1991-92 was justified based on factual considerations, ultimately dismissing the appeals. 4. Lastly, the rejection of the appeal regarding the gross profit addition underscores the Tribunal's adherence to the factual findings and legal principles governing the case. Despite the appellant's arguments and references to legal decisions, the Tribunal upheld the assessing authority's decision based on the specific circumstances of the case, emphasizing the importance of maintaining accurate accounts and cooperating with the revenue authorities. The dismissal of the appeals signifies the Tribunal's affirmation of the orders passed for the assessment years in question, highlighting the significance of factual considerations in tax assessments and appeals.
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