1983 (1) TMI 178

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....rtment is that the AAC erred in reducing the ITO's estimation of the assessee's net income form the sale of sugarcane from 40% to 25% thereby reducing the assessee's total income by Rs. 30,276 and Rs. 22,668 for the years under consideration. There is another ground which is common that the AAC erred in admitting evidence not produced before assessment the ITO regarding the nature of the cane p....

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....on and bhusa items (which were confirmed by the AAC as the assessee had withdrawn its objection for estimate at 30% on the cotton and bhusa). 4. By the adopting of 40% of the sugarcane sale proceeds, it was pleaded before the AAC that the ITO's estimate was very high and that its income from sugarcane by the assessee was accepted by the ITO in earlier years. The assessee had agricultural lands ....

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....at Rs. 19,100 for asst. yr. 1976-77 and Rs. 24,530 for asst. yr. 1977-78. 6. The department is aggrieved with the order of the AAC since he ahs given substantial reduction to the assessee. Shri Sathe, the ld. departmental representative, heavily relied on the orders of the ITO and stated that the adoption of 40% profit on sugarcane sale proceeds is reasonable. Accordingly, High Court submission....

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....ught to the notice of the assessee. As against that in appeal it was stated that profit earned by the 'A' on sugarcane proceeds was accepted in the earlier years, the assessee gave the detail of his expenses per acre which was duly supported by the certificates issued by the two factories. I do appreciate that this piece of evidence was not before the ITO. I hold that the certificates are vital pa....