1976 (6) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fficer. It is clear from the assessment order, annexure " A ", paragraph 2, and note at page 5, that the estimate was based on the " normal gross profit rate obtainable in such business". The normal gross profit rate obtainable in such business was ascertained by the Income-tax Officer on the basis of the percentage of profit disclosed by two assessees whose names have been mentioned in the assessment order and styled as comparable cases. In the appeal before the Appellate Assistant Commissioner the assessee contended that this data collected by the Income-tax Officer had not been disclosed to the assessee and, therefore, there has been violation of the principles of natural justice and the provisions of section 142(3) of the Income-tax Act .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ppellate Assistant Commissioner confirming the order of the assessing authority was justifiable or not on other material that was available. It relied on the fact that the assessee himself had returned 10 per cent. profits in the previous year. It considered the explanation given by the assessee for the fall in gross profit rate for the particular year in question and held that the explanation had not been made out. For these reasons and these reasons alone the addition was sustained. The first question that arises for our consideration is whether in these circumstances the question referred to us really arises from the Tribunal's order. There is no gainsaying the fact that if it was necessary that the question raised before the Tribunal .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he assessee had raised a contention, the consideration of which was unnecessary for disposing of the appeal and the fact that that contention had not been considered, would not give rise to a question of law which can be said to arise from the order of the Tribunal. On this aspect no decision of any court had been placed before us. We are of the view that a question of law can be said to arise from an order of the Tribunal only when a consideration of that question was necessary for disposing of the appeal before the Tribunal. Otherwise, any question unnecessary for the decision of a case which the Tribunal rightly refrained from taking into consideration can be said to arise from the order of the Tribunal. The question referred to us doe .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X