9911796707
TMI Blog1992 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... lieve to be untrue. The estimate of advance tax furnished by the assessee on 15th Dec., 1977 showed income of Rs. 529.15 lacs whereas the revised return of income declared income of Rs. 703.39 lacs. There was thus a difference of Rs. 174.24 lacs in the returned income and the income estimated for the purpose of advance tax. This, according to the Assessing Officer, was a big difference between the income returned and the estimate of advance tax filed. On the basis of this difference he drew an inference that the estimate filed was not on proper basis and no full and proper justification was shown therefor. The assessee filed detailed explanation before the Assessing Officer but all that was dismissed as untenable. Again the assessee filed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns were only expenditure divisions. It is further contended by him that the actual gross profit in respect of the four units was recorded upto October, 1977 and for the remaining two months estimate was made by taking the average of the ten months. It is further contended by him that the assessee-company is a multi-unit company. It manufactures diverse goods like synthetic yarn, cement, cops, steel, etc. By the time the estimate of income was to be made the results of November were not received and, therefore, the assessee adopted a reasonable method for estimating the profits for November and December by averaging the profit disclosed in the gross profit registers upto October, 1977. The actual gross profit for November and December came o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts own units. That system cannot be said unscientific. It could not be expected from the assessee to calculate the actual gross profit from the four units for the last two months of November and December. The assessee rightly took the average gross profit for those two months particularly when the estimate of advance tax was due to be filed by 15th December. That estimate itself has made a difference of Rs. 186 lacs. That is to say more than what was the difference in the estimate of advance tax and the returned income. In this view of the matter coupled with the arguments of the learned counsel for the assessee referred to above, with which we agree, it is difficult to draw an inference that the estimate was untrue to the knowledge or beli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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