9911796707
TMI Blog1994 (8) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... s as such are sold without applying any process, a presumptive profit at 15 per cent on the purchase price has to be taken for the computation of the profit out of such income. Section 44AC of the Act was inserted in the Act by the Finance Act, 1988 with effect from 1-4-1989 and later amended by Direct Tax Laws Amendment Act, 1989 with effect from 1-4-1990. The accounting period of this assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year 1989-90 the sale made during the accounting year will fall within the purview of the provisions of section 44AC. He held that as sections 44AC and 206C are separate sections, section 44AC is applicable for the accounting year relevant to the assessment year 1989-90 and section 206C from 1-6-1988. He accordingly proceeded to make assessment on presumptive basis. He found that in the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able for purchases and sales made after 1-4-1988. He accordingly directed the Assessing Officer to bifurcate the purchases made by the appellant prior to 1-4-1988 and apply the provisions of section 44AC to the purchases of the later period only that is to say after 1-4-1988. He further proceeded to delete the addition of Rs. 20,000 made by the Assessing Officer on account of low withdrawals. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se; and (4) any other forest produce not being timber. The rates for working out the profits in respect of trading in each of these items for computing income chargeable to tax under the head "Profits and gains of business or profession" from such business have been enumerated in the section itself. It is notable that section 206C was also introduced by the Finance Act, 1988 and it provides for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax under section 206C of the Act came into force with effect from 1-6-1988. It is, therefore, obvious that the two sections have to be read together and a harmonious construction has to be given to them to make them effective. At the same time an interpretation which creates some factional meaning to the section cannot be accepted. We are, therefore, of the opinion that as this section has been b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
