1966 (2) TMI 17

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome-tax Act, 1922, in this, is : " Was the Tribunal justified in coming to the conclusion that, upon the facts admitted or found before them, the Income-tax Officer was entitled to proceed under the proviso to section 13 as regards the assessment of the engineering department of the assessee for the relevant ' assessment year ' ? " The facts from which this reference arises may be briefly st....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of the Act, and, having regard to certain circumstances, such as market conditions prevailing during the accounting period and the amount of profits derived in previous years, the Income-tax Officer came to his finding as to the profits. The Income-tax Officer estimated the gross profits at 10 per cent. of the sales resulting in the addition of Rs. 49,688 to the book profits. This finding was uph....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he computation shall be made upon such basis and in such manner as the Income-tax Officer may determine. " The case of the revenue is that the books of this assessee were maintained in such a manner that it was not possible to arrive at the correct figure of profits therefrom. If this be the position, the result will be that the computation can be made by the Income-tax Officer upon such basis ....