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TMI Blog2016 (11) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur. The assessment years involved are 1997-98 and 2000-01. The appellants are association of persons. 2. We may take into consideration the facts of the admitted appeal, namely, DB ITA No. 210 of 2015, as identical questions are involved, for the sake of convenience. The following questions were admitted by this court : "(i) Whether the learned Income-tax authorities below were justified in making/sustaining the concomitant of the rejection of the books of account under section 145(3) in view of the ratio laid down by this hon'ble court in case of CIT v. Gotan Lime Khanij Udhyog [2002] 256 ITR 243 (Raj) ? (ii) Whether in the proceedings under section 145(3) read with section 144 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee declared a turnover of Rs. 116,24,42,199, however, declared loss at Rs. 2,92,30,610. The Assessing Officer after rejecting the books of account, estimated the turnover as aforesaid and made a trading addition of Rs. 8,52,55,512. On an appeal by the assessee before the Commissioner of Income-tax (Appeals), resulted into reduction of the trading addition. On a further appeal by the assessee as well as the Revenue, resulted into reduction of application of estimated trading addition by the Tribunal, however, the Revenue having not been satisfied with the order of the Tribunal, filed appeal before this court under section 260A of the Act. This court, after examining not only the case of the assessee but also in a bunch of cases, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Revenue contended that the order of the Tribunal is just and proper and the Tribunal has taken into consideration several other cases while applying a particular rate. He further contended that rather the Revenue is aggrieved inasmuch as only a net profit of only 1 per cent. has been applied and even the turnover has been reduced, which was estimated on a reasonable basis by the Assessing Officer. He further contended that the Tribunal has taken into consideration another connected case of the group of the assessee itself in the case of Asst. CIT v. Rajaram Manoharlal and Party (Kishangarh Bas Group) in I. T. A. No.688/JP/1998, where also certain percentage of rate was applied. He thus supported the orders of the Tribunal. 7. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easoned, but in a case like this when admittedly the books of account have been rejected by all the three authorities and even this court found that the learned counsel at the time of arguing the appeal in the first round of litigation in the case of CIT v. Ram Singh (supra), admitted about application of provisions of section 145(3) of the Act, claiming that the loss is required to be allowed, in our view is not proper. To reiterate a point which was already considered by this court about rejecting the books of account under section 145(3) of the Act, is not proper and still learned counsel for the appellants insisted that this court in Ram Singh's case (supra) did not consider this issue. 10. This court, while deciding the appeals in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all trading result, and trading account/profit and loss account as declared, goes out of picture and the resultant figure is the ultimate net income of the assessee. 12. We find no reason to deviate with the findings of the Tribunal in applying a net profit rate of only 1 per cent. to which we concur with the finding of the fact recorded by the Tribunal, which has also taken into consideration other similarly situated identical cases of liquor traders in the same line as that of the assessee/appellant. 13. In DBITA No. 174 of 2014 on a turnover of almost Rs. 4. 36 crore, the assessee only declared an income of Rs. 2,32,516, which had no apparent basis and since the books of account were rejected, the Assessing Officer after taking into co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the connected case, which is a sister concern of the same party, i.e., DBITA No. 175 of 2014, also on a turnover of almost Rs. 4. 01 crore, a meager income of Rs. 2,04,390 which had no apparent basis, has been shown and since the books of account were rejected, the Assessing Officer after taking into consideration identical cases of liquor traders decided by the Tribunal applied net profit rate. The Tribunal, after remand by this court, has gone into the issue elaborately and has taken into consideration various factors, namely :- (a) State Government policy for a particular area in a particular year may influence the results. (b) Geographical conditions. (c) Socio-economic conditions. (d) Population mix of a particular area i.e. u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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