2005 (12) TMI 57

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....see (hereinafter described as "the assessee"), the order of the Tribunal involves the following substantial questions of law: "(i) Whether, under the facts and circumstances of the case, the Tribunal's finding that in the case of surveys the method of assessment shall be estimation of profit as per the past history and addition over and above the amount surrendered is justifiable and correct in law? (ii) Whether, under the facts and circumstances of the case, the Tribunal was justified in not taking into consideration the various reasons for deletion of addition given by the Commissioner of Income-tax (Appeals) ignoring the facts that the appellant deals with different types of qualities, quantities, sizes and old and new type of bard....

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....um of Rs. 10,50,000 subject to the condition that no penal action would be taken against it in respect of the relevant assessment year, i.e., the assessment year 1997-98. It was stated that the said amount was over and above the normal book profits. During the course of the assessment proceedings, the Assessing Officer found that gross profit rate, declared by the assessee, for the relevant assessment year, was lower than the earlier years. He also noticed that no stock register and manufacturing account had been maintained and even the valuation of the closing stock had been done at the lower rates. Consequently, ignoring the book results, he applied a gross profit rate of 1.49 per cent, to the declared turnover, which resulted in an....

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....round that the book results of the assessee could not be rejected merely on the ground of low gross profit rate, particularly when the Assessing Officer did not point out even a single defect in the books of account maintained by the assessee. It is asserted that in view of substantial increase in the total turnover for the year because of lower rate, the book results of the present accounting period were not comparable with the results of the previous year. It is argued that while restoring the addition, made by the Assessing Officer, the Tribunal has failed to take into consideration all these relevant factors and, therefore, its order is perverse, giving rise to the aforementioned substantial questions of law. In support of the propositi....