2013 (3) TMI 515

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....ER The present petition under Section 256(2) of the Income Tax Act, 1961 (for short 'the Act') is by the Revenue arising out of an order of the Income Tax Appellate Tribunal (for short 'the Tribunal') dated 18.05.1998 pertaining to the assessment year 1987-88, claiming the following substantial questions of law:- "1. Whether, on the facts and in the circumstances of the case, the Income-tax ....

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....e at the rate of 4.2% from the sales of Rs. 1,67,19,652/-. However, the Assessing Officer estimated sales at Rs. 2,30,00,000/- and by applying gross profit rate @ 5%, the profit would come to Rs. 11,50,000/-. Since the assessee has shown profit of Rs. 7,01,187/- and had also surrendered an amount of Rs. 4,00,000/- under Section 132(4) of the Act, therefore, an amount of Rs. 48,813/- was found to b....

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....ing out the same at Rs. 50,000/- on estimate is not warranted by the provisions of law. Such investment has to be worked out on proportionate basis as by the Hon'ble I.T.A.T, Amritsar Bench, Amritsar, in I.T.A No. 503/1974-75 in the case of M/s Harjit Singh Tarlochan Singh, Railway Road, Khanna vs. ITO Khanna, relating to the assessment year 1971-72. On proportionate basis such investment will ....

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....tax due at the time of filing of the return. Therefore, the assessee is not liable to pay interest in terms of Sections 215 and 217 of the Act. The Tribunal in further appeal upheld the order of the Commissioner of Income Tax (Appeals), Ludhiana. The Revenue sought to raise the substantial questions of law as mentioned above, which were declined by the Tribunal vide order dated 14.10.1998. The ....