2005 (3) TMI 757

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....he respondent-assessee is a liquor contractor who has acquired right to trade in alcohol, which is exclusive privilege of the State, relating to retail in bonded country liquor as well as Indian Made Foreign Liquor (IMFL) for the area Jodhpur, Bilara, Shergarh, Baori and Mathania for the accounting period 1993-94 relevant to the assessment year 1994-95. On 9-8-1995, the assessee filed his return declaring a total income of ₹ 60,83,130. After the return was processed under section 143(1)(a) of the Income-tax Act, 1961, notices under sections 142(1) and 143(3) were issued for framing regular assessment. During the course of inquiry, the Assessing Officer was of the opinion that while cost of purchases made by the assessee is determina....

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....fit of ₹ 3,69,65,535 showing a GP rate of 17.74 per cent on turnover. The Assessing Officer has decided to adopt 18.50 per cent GP rate on turnover and arrived at hypothetical turnover by taking the figures of purchase price and GP rate to be applied on turnover. As a result of which, additions of ₹ 21,26,66,373 in the case of country liquor and ₹ 3,93,43,279 in the cse of IMFL were made for making total addition of ₹ 52,18,330 as against the GP at ₹ 3,69,65,535. 6. On appeal, the CIT(A) vide its appellate order dated 24-3-1998 has reduced a lump sum of ₹ 18,00,000 of additions in case of country liquor business and a lump sum of ₹ 19,00,000 from the GP arrived at by the Assessing Officer in respec....

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....Tribunal and if the Tribunal in its wisdom has estimated the profits and gains from the business of the assessee on the basis of material disclosed by the assessee, it does not give rise to any question of law which can be examined in this appeal, nor this Court will be justified in substituting its own finding of facts, in place of Tribunal's finding merely because the view sounds more reasonable. The finding of the Tribunal, in the circumstances, according to the learned counsel for the assessee, cannot be said to be based on no material or perverse which requires the interference. 9. Having given our careful consideration to the undisputed facts which emerge on the record, it is obvious that the only ground which weighed with the Assess....

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....han such rate disclosed by the assessee, nor any material has been brought on record to reject the turnover disclosed by the assessee, and has taken the very same figures of turnover, which were not acceptable as correct, and for that reason books of account were rejected by holding that it is not possible to correctly compute the profit and loss of the business, on that basis, the contention commends its acceptance. 12. In our opinion, on the face of it, it is contradictory in terms that the very foundation on which the books of account rejected by the Assessing Officer and which order has been affirmed by the Tribunal, should be taken to be the basis for accepting the assessee's results because no material was produced by the Assessing O....