TaxTMI 
TaxTMI 
1982 (6) TMI 170
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.... right in concluding that the entire value of gifted articles is to be set off against the subscriptions relatable to broken cycles when they have held that there is no obligation cast upon the assessee either to return the amount or to send the gift articles without receiving the full amount? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee's income from 'Sales Circulation Business' should be computed by taking the gross receipts and allowing the gifted articles relatable thereto especially when it is difficult to arrive at the value of the gift articles relating to broken cycle and incomplete cycle?" In our opinion, no question of law arises out of the order of the Tribun....
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....sum of Rs. 11,66,769 to the trading, profits and loss account and computed the income. The assessee had omitted to take into account the difference of Rs. 1,62,097 on the ground that the subscription related to the incomplete or broken cycles. The ITO did not accept the assessee's contention. He held that the total subscription received during the year should be taken as gross receipt and from the said figure of Rs. 13,28,867, he arrived at the income of the assessee at Rs. 2,53,189 after including the interest income of Rs. 11,205. 3. On appeal, the CIT(A) held that there was no justification for disturbing the results shown by the assessee and for applying the provisions of s. 145(1) of the Act. According to him, the method adopted was o....
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....e novo and determine the cost of the gift articles to be set off against the subscriptions relatable to the broken cycles. While setting aside the assessment, the Tribunal experienced difficulty in suggesting this method to be adopted and made the following observations: "A real difficulty will arise if the value of a portion of it is to be set off. Therefore, the entire value of the gift articles it is rational to set off against the subscriptions received relatable to the broken cycles and only the balance could be regarded as income. If the entire value of the gift articles attributable to the subscribers to the broken cycles is set off that would mean that against the prospect of income, the expenditure incurred therefore had been set ....
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.... assessment made by the ITO should be set aside so that the ITO may go into this question de novo and determine the cost of the gift articles to be set off against the subscriptions relatable to the broken cycles. While considering the alternative contention of the assessee, the Department will have to see how to adjust the interest of the assessment years. This difficulty is to a greater extent obviated if different method is adopted". It will be seen from the above that the Tribunal while deciding the matter and suggesting the method of accounting to be adopted by the Department, had taken into account all the possible circumstances and only then it direct that method to be adopted. The assessment is only set aside by the Tribunal leavin....