9911796707
TMI Blog1996 (7) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal justified in law in finding that the Income-tax Officer did not reject the books of assessee ? 2. Whether, on the facts and in the circumstances of the case, was the Tribunal right in finding that the income of Rs. 1,12,906 determined by the Income-tax Officer in the first instance has only to be taken as the reasonable business income of the assessee for this assessment year ? " The assessee is concerned with the assessment year 1979-80. He conducted five arrack shops and four toddy shops and in regard thereto returned a total income of Rs. 68,350 which is in response to a notice under section 148 of the Income-tax Act, 1961, dated March 25, 1981, the return having been filed on March 9, 1983. In paragraph 3 of the order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case for rejecting the accounts filed by the assessee and to estimate the total income. Thereafter in paragraph 11 of the order the officer has taken into consideration that for the subsequent accounting year ending on March 31, 1980, a total income of Rs. 2,43,626 is shown by the assessee after filing to its bankers a profit and loss account in regard thereto. It is observed that this situation is, in spite of the position that whereas in the said year the assessee had only one arrack shop compared to his having five arrack shops during the year under assessment. Noticing this situation, the Income-tax Officer records that on a proper inference the income for the assessment year in question should have been more at least something than in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. This would mean that the Income-tax Officer did not reject the books of account but made certain disallowances of expenses because of the absence of vouchers, etc. Again in the course of the assessment order at paragraph 10, he stated that there is a strong case for rejecting the accounts and estimating the total income. He, therefore, estimated the assessee's business income at Rs. 2,00,000 based upon the profit and loss account of the assessee for the succeeding year filed before its bankers. While arriving at the estimate of Rs. 2,00,000, he has not brought on record any material as to the location of the shop that was bid in the succeeding year and the amount of the kist in the succeeding year for that one shop and the conditions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t made certain disallowance of expenses because of the absence of vouchers, etc. We have pinpointed the findings of the Income-tax Officer in paragraph 10 of the order and in that context the above observations of the Tribunal would have to be categorised as ignoring the material or much less misleading the material and if this court dealing with the proceedings of reference under section 256 of the Income-tax Act, 1961, comes across such a situation, it is an occasion for interference in regard thereto. The Tribunal is not justified in setting aside the two concurrent orders and to adopt the figure of Rs. 1,12,906 by way of substitution. For the above reasons, we answer question No. 1 in the negative, in favour of the Revenue and against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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