9911796707
TMI Blog1990 (12) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... duty paid at the time of the clearance of the goods at the prevailing rate. The goods are supplied to the Government agencies on the basis of price list prevailing at the time of acceptance of the order and the exchange rate and custom duty is applied on the basis of one year's average at the time of supply of goods as per DGS D rate contract. The appellant-company submitted Form No. 29 dt.13th Sept., 1979on 15th Sept., 1979 showing an estimate of income at Rs. 7 lakhs which was subsequently revised on15th March, 1980estimating the income at Rs. 10 lakhs. The prepaid taxes consisting of advance and tax deducted at source was Rs. 7,64,039. The appellant-company filed its return of income on19th June, 1981declaring an income of Rs. 15,81,08 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other reason for variation in the estimated income and declared income was on account of sudden and unexpected increase in sale in the month of March, 1980 after10th March 1980. The figure of sales for the month of March, 1980 was Rs. 16,43,979 out of which the sale upto 10th March, 1980 was only Rs. 1,30,114 and the balance amount of sales of March, 1980 amounting to Rs. 15,13,865 was made after 10th March, 1980. He further pointed out that besides aforesaid two reasons the appellant company received certain commission amounts after submission of the revised estimate. The figure of such commission received during the period from15th March, 1980to31st March, 1980was Rs. 97,664. He further submitted that theMadrasoffice had also received a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by the assessee clearly shows that g.p. rate ranging between 23 per cent to 29 per cent was derived by the appellant company in asst. yrs. 1973-74 to 1978-79 except in asst. yr. 1976-77 when g.p. rate of 19.27 per cent was declared. The assessee instead of relying upon the g.p. rate of the preceding year ought to have looked into the g.p. rate of past several years which would clearly indicate that the estimate of income shown at Rs. 10 lakhs was a device which was deliberately resorted to by the appellant company to defer the payment of advance tax. The intention to defer the payment of advance tax by the appellant company is further supported by the fact that the payment of balance amount of tax under s. 140A has been further d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y determined by the assessee until the closing stock inventory is available and the entire figures of purchases, expenses and all other relevant figures from all the branches are fully complied. In view of such circumstances, the assessee could honestly and reasonably believe that its current income can be estimated by adopting the g.p. rate of immediately preceding year. The other contentions submitted on behalf of the appellant that commission income of Rs. 97,664, misc. income in Madras office amounting to Rs. 61,008 were received by the appellant company during the last 15 days of the accounting year is also probable and possibly it could not have been anticipated on 10th March, 1980 when the revised estimate of income was prepared. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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