9911796707
TMI Blog1982 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... g rise to this reference as set out in the statement of the case are as follows: The assessee is a registered firm deriving income from plying of passenger buses. . The assessment year under reference is 1975-76, of which the relevant accounting year is the financial year ending March 31, 1975. The ITO rejected the trading results disclosed by the assessee and estimated the profits by applying a net profit rate of 20% on Rs. 8,86,000. On appeal by the assessee the Commissioner of Income-tax (Appeals) reduced the estimated receipts to Rs. 7,93,206 and applied the net profit rate of 19%. He also added luggage receipts of Rs. 30,192 and worked out the total income at Rs. 1,80,101. On further appeal by the assessee the Appellate Tribunal mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts to it and thereafter ought to have arrived at the net profits and they were not justified in adding separately the whole of the amount of the luggage receipts in the income of the assessee. Having heard the learned counsel for the parties we have come to the conclusion that the question referred to us has to be answered against the assessee. The Tribunal has not taken into account the luggage receipts while estimating the gross income of the assessee. The net profit has been arrived at ignoring the luggage receipts. In the circumstances the Tribunal did not commit any error in adding the luggage receipts separately to the net income estimated by the Tribunal on the basis of the other receipts of the assessee. While reducing the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng from day-to-day and there might be some lag between such rise in the prices and the corresponding increase in the fares. Keeping all these circumstances in view, we are of the opinion that the luggage receipts may be separately added as done by the CIT but a net profit rate of 171% on the remaining receipts be applied ........" It does not appear from the order of the Tribunal that the assessee placed on record that any expenses were incurred by it in deriving luggage receipts. In this year the assessee also did not declare the amount of luggage receipts earned by it and the ITO added the sum on estimate. Taking into consideration all these facts the Tribunal reduced the net profit rate to 17 1/2%. In the circumstances there is no scop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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