2008 (1) TMI 821

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..... the respondent's side. 4. The IT Department is challenging the order of Tribunal dt. 9th Oct., 1998. The brief facts are that the assessee was a country liquor contractor/vendor. In the assessment proceedings, the account books of the assessee were rejected on the ground that the sales alleged by the assessee were not verified. Thereafter, following Section 145 of the IT Act, sales were estimat .....

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..... been applied and the sales have been estimated it cannot be said with certainty that the sales disclosed by the assessee as per its books of account were false. At best it could be said that the sales as declared by the assessee could not be substantiated by the assessee by evidence. 5.1 As regards the net profit rate, the assessee's explanation has been that keeping in view the licence fee paid .....

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..... al. For ready reference, the said proviso is quoted below: Provided that nothing contained in this Explanation shall apply to a case referred to in Clause. (B) in respect of any amount added or disallowed as a result of the rejection of any explanation offered by such person, if such explanation is bona fide and all the facts relating to the same and material to the computation of his total incom .....

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