9911796707
TMI Blog1994 (10) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... and expected sales, licence fee could be made basis for estimating sales and, therefore, lower authorities were justified in estimating sales and profit - MCC NO. 202 OF 1985 - - - Dated:- 11-10-1994 - D.M. DHARMADHIKARI AND RAJEEV GUPTA, JJ. N.C. Alok Dhingra for the Applicant. R.D. Jain for the Respondent. ORDER Gupta, J. This order shall govern the disposal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, on the facts and in the circumstances of the case, the profit percentage on the so-called sales @ 5 per cent is justified ? 5. Whether, on the facts and the circumstances of the case, the certificates (p. 5) filed stating the issue and rates applicable has discharged his burden ?" The Tribunal rejected the reference applications on 13-8-1985 by order Annexure-A. Hence these petitions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence fee but, however, net profit was estimated at 5 per cent of the sales. The Tribunal affirmed the order of the Commissioner (Appeals). 3. We have heard Shri Alok Dhingra, the learned counsel for the petitioner, and Shri R.D. Jain, the learned counsel for the department. 4. The main contention of Shri Alok Dhingra, the learned counsel for the petitioner, is that the ITO, the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y estimating the sales at 2.5 times of the licence money paid and by application of 5 per cent net profit rate." The learned counsel for the petitioner could not point out any provision of law in the Act to the effect that the licence money cannot be made the basis for estimating the sales. We are of the opinion that the licence money has direct nexus with the expected sales. 6. As it was op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les on the basis of licence money. 7. For the above-mentioned reasons, we do not find that any question of law arises out of the order of the Tribunal and we are satisfied about the correctness of the decision of the Tribunal. As such, both the petitions under section 256(2) are dismissed. No order as to costs. Let a copy of this order be placed on record of Misc. Civil Case No. 203 of 1985 - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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