9911796707
TMI Blog1980 (8) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... om their accounts in the books of the said firm and the other by the partners of M/s Hindustani Book Depot by withdrawing money from their accounts in the books of the firm. The case of the assessees was that the property in question belonged to the partners of the two firms and was assessable in the status of AOP. A return of income was also filed in that status showing property income at Rs. 10,178. While framing the assessment in the cases of M/s Hindustani Book Depot and M/s Shikshak Bandhu Press, ITO noticed that the funds for the construction had been provided by the partners of these firms and on that basis it was held by the ITO that the said property belonged to these firms. Further, according to the assessee, the cost of construct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led unexplained investment cannot be made in the appellant's hands". The ld. Commissioner declined his permission on the ground that on the question of ownership of the said property the assessee had made conflicting submissions before the ITO. It was also noticed by the ld. Commissioner that the assessee's contention before the ITO was that the construction of the Market was not made by these firms but by its partners. On these facts, the ld. Commissioner concluded that the omission of the ground was wilful. 3. It is vehemently urged by the ld. counsel for the assessee that the ld. Commissioner (A) was not justified in dealing to entertain the additional ground of the assessee. It was pointed out by reference to letter dt. 10th Jan., 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout taking a decision as to the ownership of the property in question. The facts, clearly showed that the property, according to the assessee, belonged to the AOP of Mahashya Market and return of income had been filed showing the income of the same property. In the course of the assessment of the two firms it had been stated in clear terms that these firms had nothing to do with the property although funds for construction had been provided by the partners, by withdrawing money from the firms. We do not see how it could be said on these facts that the assessee had clearly stated, that the two firms had nothing to do with the property in question. The ld. Commissioner was not justified in holding that the omission on the part of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.P. rate of 40 per cent. The assessee was accordingly called upon by notice dt.14th Nov., 1976to show cause why the profit should not be computed by applying the rate of 40 per cent. No satisfactory reply was given and also no material could be placed on record to show that there were any special circumstances in this year warranting a departure from the past. ITO, therefore, applied 40 per cent which resulted in the addition of Rs. 11,324 in the trading account. Before the Commissioner (A) it was urged that the fall in profit was due to the fact that while the selling price of the publications had remained the same, the cost price had gone up considerably but beyond to this general submission no cogent material was produced to establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed sale of Rs. 4,50,000 which resulted in the addition of Rs. 29,898 and the same was reduced in appeal to Rs. 27,188. 7. Against these additions sustained in appeal, it has been urged by the ld. counsel for the assessee that the authorities below were not justified in applying the Tribunal's decision for the immediately preceding year since the facts in these years were different. In these years, it was urged the fall in profit rate was due to the adverse market conditions. But, neither before the ITO, nor before the ld. Commissioner (A) any material was placed to establish this plea. The ld. Commissioner, therefore, came to the conclusion that the facts of these matters were identical and hence the profit rate of 50 per cent approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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