9911796707
TMI Blog2006 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has approached this court by way of filing the present appeal against the order dated August 11, 2005, passed by the Income-tax Appellate Tribunal, Amritsar Bench, SMC, Amritsar (for short "the Tribunal") in I. T. A. No. 161 (Asr.) of 2005 dated August 11, 2005, for the assessment year 2002-03, raising the following substantial questions of law: "(i) Whether the instructions issued by the Central Board of Direct Taxes under section 119 of the Income-tax Act are binding upon the income-tax authorities? (ii) If the answer to question No.1 is negative whether the income-tax authorities at the time of assessment can travel beyond reasons recorded at the time of scrutiny and the reasons can be withheld from the assessee? (iii) Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961, (for short "the Act") as per the returned income. The case of the assessee was selected for scrutiny, and accordingly, statutory notices under sections 142(1), 143(2) of the Act were issued in time. Process for scrutiny was initiated with the prior approval of the Commissioner of Income-tax, as is evident from the facts recorded in the order of assessment. On test checking of the cash book for part of the year it was found that the assessee had introduced cash receipts ranging from Rs. 30,000 to Rs. 2 lakhs in the cash book. 3. The assessee failed to explain the nature or source of amount so introduced in the cash book. It was further found that substantial amounts of cash were withdrawn from the bank on different da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected the appeal. However, the net profit rate vis-a-vis gross receipt of the assessee was reduced from 8 per cent. to 6 per cent. 7 We have heard Sh. R. L. Gupta, advocate, for the assessee and with his assistance have perused the relevant orders on record. 8. The primary contention raised by counsel for the assessee is that the case of the assessee has been selected for scrutiny in contravention to the circular dated July 26, 2002, and in terms of the settled position of law, a circular issued by the Central Board of Direct Taxes under section 119 of the Act is binding on the authorities below. There is no dispute on the proposition that a circular issued by the Board under section 119 of the Act is binding on the authorities unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndings recorded to that effect also. 10. Another issue raised by counsel for the assessee is that in the previous years as well as in the subsequent years the authorities had accepted the claim of the assessee. 11. It is a settled law that each year is an independent assessment year. In the case in hand on a scrutiny of the material on record and from a perusal of the books of account whatever produced by the assessee, it was found that the assessee was not able to satisfy the authorities with regard to its claim for exemption under section 80P(2) (a) (vi) of the Act. This being the position, it would not be just to claim that merely because in the earlier years or in the subsequent years the assessee had got exemption, the same sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of counsel for the assessee is that this court should substitute its own opinion on the rate of net profit as in some similar cases, the net profit rate upheld by the Tribunal was at 3 per cent. of the gross receipts. 13 We are afraid that this would not fall within the domain of jurisdiction vested in this court under section 260A of the Act while hearing the present appeal. Even if this court may have some different opinion for estimation, but still substitution thereof will not be the right course. As is found from the facts, the Assessing Officer had estimated the net profit rate at 8 per cent. relying upon the declaration made by some similar other labour contractors whereas the assessee had relied upon another order of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law. (d) If the question raised in the appeal is already settled by the highest court of the countly or the jurisdictional High Court, then the same cannot be regarded as a substantial question of law. Similarly, if the general principles to be applied in determining the question are well-settled and the only issue relates to application of those principles to the particular facts of the case, then no substantial question of law can be said to arise in the appeal. (e) If the conclusions recorded by the Tribunal in the particular facts of the case are plausible, then it would not be a case of substantial question of law. (f) The finding of fact recorded by the Assessing Officer or the first appellate authority or the Tribunal c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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