2013 (8) TMI 193

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....ue and has allowed the cross-objection of the assessee; and in the result, has deleted in toto the impugned additions towards country liquor business and Indian Made Foreign Liquor (IMFL) business of the assessee, as made by the Assessing Officer ('the AO') in the assessment order dated 14.3.1997, and as partly retained by the Commissioner of Income Tax (Appeals), Jodhpur ('the CIT(A)') in the order dated 28.01.1998 as passed in the assessee's appeal. The appeal has been admitted on the following question of law:-      "Whether the best judgment assessment made by the A.O. was based on cogent material and relevant criteria and the CIT(A) was unjustified in displacing the certain of comparable cases than that of pas....

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....e assessee. While observing that when books of accounts are rejected, past history of the case becomes relevant and the same could be a guide for reasonable profit, the learned CIT(A) restricted the addition made by the AO to Rs. 8,25,308/- for country liquor business and Rs.6,06,162/- for IMFL business. Aggrieved by the aforesaid order dated 28.01.1998, the Revenue preferred an appeal before the Tribunal and the assessee took cross-objections therein. By the impugned order dated 30.10.2007, the Tribunal has allowed the cross-objections taken by the assessee and has dismissed the appeal preferred by the Revenue; and, in the result, has deleted the additions altogether while observing and holding as under :-     ....

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....the assessee and the declared results have to be accepted. Therefore, in our considered opinion, the ld. CIT(A) even after accepting the above theory in principle, has sustained some addition which is paradoxical. The ld. CIT(A) has observed at page No.6 of his order that "admittedly the appellant has shown better profit in this year as compared to the last year". With the above observations, we dismiss the ground raised by the revenue and accept the ground raised by the assessee, in respect of country liquor account.      5. .....Apparently, the assessee has declared better gross profit rate at 24.04% as compared to 23.85% shown in the immediately preceding assessment year, in spite of the fact that the turnover of I....