1976 (6) TMI 44 - AT - Income Tax

Summary

The appeal was made by a firm of four partners regarding the assessment of income. The firm declared income of Rs. 5,610 based on receipts of Rs. 72,330, resulting in a profit of 7.7%. The Income-tax Officer estimated profit at 12% and added income of Rs. 8,680. The Appellate Tribunal found the declared profit reasonable for the first year of business and allowed the appeal, stating that subsequent years' profits should not influence the current assessment.