9911796707
TMI Blog2006 (8) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Tribunal that the sum of Rs. 50,000 shall be taken as the net profit from the undisclosed transaction, i.e., Rs. 2,82,72,555 for the assessment year, 1991-92. – held that that it will be proper and justified to remit back the case to the Assessing Officer (AO) for fresh adjudication of what would be the net income out of the entire amount of Rs. 2,82,72,555 and also the amount of tax payable by the respondent/assessee for the assessment year 1991-92 after ascertaining the amount of income and net profit for the assessment year 1991-92. X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax, Circle-II(1), Gauhati, under his assessment order had treated the said whole amount of Rs. 2,82,72,555 (rupees two crores eighty-two lakhs seventy-two thousand five hundred and fifty-five) recorded in the entries marked K as the income of the assessee and the total amount of K sale of Rs. 2,73,75,147 (rupees two crores seventy-three lakhs seventy five thousand one hundred and forty-seven) had been treated as total amount of sales. Further, the Assistant Commissioner of Income-tax, Circle 11(1), Gauhati, under his assessment order had taken that the estimated net profit suppressed out of the above unrecorded sale as Rs. 1 lakh 10 thousand and that the total amount of tax payable by the respondent is Rs. 98,48,741 (rupees nine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present appeal for challenging the order of the Tribunal dated December 17, 2002, read as follows: "(ii) For that from the materials on record the Assessing Officer was fully justified in treating the entire amount of purchases of Rs. 2,82,72,555/- as deemed to be the income of the assessee from undisclosed sources. The Assessing Officer was further justified in treating the entire entries of sale as undisclosed investment and thereafter in estimating the net profit suppressed out of the unrecorded sales at Rs. 1,10,000 and treating the same to be the concealed income of the assessee. (iii) For that there is a clear finding by the Tribunal at para. 6 of Tribunal's order that the assessee was not able to explain that all unrecorded tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 estimated by the Assessing Officer is purely based on estimate and without any supporting evidence. But the Tribunal also noted the facts that the assessee had also failed to furnish relevant details of the purchases and sales kept out of the regular books of account. The Tribunal took the view that the profit out of the undisclosed transaction is required to be reasonably estimated. The Tribunal held that in the absence of specific material or evidence on record, the estimate made by the Assessing Officer is not sustainable in the eye of law hut went on to hold that it would be proper and justified for a profit of Rs. 50,000 is taken as the net profit from the undisclosed transaction. It is submitted that if the Assessing Officer's es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for coming to the finding by the learned Tribunal that the sum of Rs. 50,000 shall be taken as the net profit from the undisclosed transaction, i.e., Rs. 2,82,72,555 for the assessment year, 1991-92. For the reasons discussed above, we have answered the question formulated in the present appeal in the negative. Accordingly, the impugned judgment and order of the learned Income-tax Tribunal dated December 17, 2002, passed in I.T.A. No. 28 (Gau) of 1996 for the assessment year 1992 is set aside. Further, we are also of the considered view that it will be proper and justified to remit back the case to the Assessing Officer (AO) for fresh adjudication of what would be the net income out of the entries marked K, i.e., the entire amount of Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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