2011 (4) TMI 80

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....989-90 to 1989-1999 and from 1st April, 1998 to 19th August, 1998 dismissing the appeal preferred by the assessee. Being dissatisfied, the assessee has come up with the present appeal.   The facts giving rise to filing of this appeal may be summed up thus:   a) The assessee is a manufacturer of cement in his mini-cement plant in the District of Hazaribagh, Bihar.   b) There was a search in the factory and some papers were found in Varanasi, at the residence of one of its Director, namely, Anil Agarwal. While deposing before A.D.I. (Investigation) Rachi, one G.C. Agarwal, another Director of the Company with a view to buying peace, declared a sum of Rs.7.50 lac and further declared an estimated G.P. of 7%. The controv....

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....to this question and in such circumstances, the Appellate Authority was of the view that gross profit rate should be estimated at 8.5% as reasonable gross profit rate on the basis of which the undisclosed income for the relevant block period should be computed.   e) Being dissatisfied, the assessee preferred an appeal before the learned Tribunal below and by the order impugned herein the Tribunal has affirmed the order passed by the Commissioner of Income-tax (Appeals). Being dissatisfied, the assessee has come up with the present appeal.   A Division Bench of this Court at the time of admission of the appeal formulated the following substantial questions of law: "i) Whether on the facts and in the circumstances of the ca....

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....ter going through the materials on record, we find that although a comparative chart showing gross profit rate in the business of cement manufacturing earned by different business concerns was produced by the appellant both before the Assessing Officer and the first Appellate Authority, the Assessing Officer without any basis arrived at the conclusion that rate should be assessed at 10% without giving any reason for such estimate. It appears that the Commissioner of Income-tax (Appeals) came to the finding that there was no basis of the estimation of the Assessing Officer. Nevertheless, he himself arrived at the figure of 8.5% equally without any basis and the Tribunal below also affirmed such finding without giving any reason but merely on....