TaxTMI 
TaxTMI 
2005 (12) TMI 60
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....to the conclusion that there was no consistency in the method adopted by the Assessing Officer wherefrom the true profits from his business could be worked out and rejected the books of account of the appellant under section 145(2) of the Act and made his own assessment of the income of the appellant determining the total income of the appellant. In the said assessment the Assessing Officer also took into consideration the agricultural income of the minor son of the appellant for the purpose of determining the rate of income-tax applicable to the income of the appellant. Aggrieved by the assessment order dated March 12,1999, of the Assessing Officer as well as the demand, the appellant filed an appeal before the Commissioner of Income-tax (Appeals), Bhopal, numbered as Appeal No. IT/u-22/1990-2000. The first two grounds of appeal related to addition of Rs. 43,742 and Rs. 39,239 on account of low gross profit on sale of gold and silver ornaments and the appellant urged before the Commissioner of Income-tax (Appeals) that he had maintained proper books of account and, therefore, the books of account could not be rejected under section 145(2) of the Act by the Assessing Officer but....
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....ellant in Appeal No. 668/Ind/99 and accordingly decided the issue against the appellant. Aggrieved by the aforesaid order of the Income-tax Appellate Tribunal, the appellant has filed this appeal before this court. On August 6, 2002, this court while admitting this appeal formulated the following two substantial questions of law: "(1) Whether the Tribunal having accepted the correctness of the account books of the appellant-assessee erred in invoking sub-section (2) of section 145 of the Income-tax Act can put its own assessment regarding gross profits on the sale of gold and silver? (2) Whether the Tribunal erred in law in adding the agricultural income of minor son to the income of the appellant-assessee even when section 10 of the Income-tax Act expressly excluded such an income?" After formulating the aforesaid two substantial questions of law, the court also observed in the order dated August 6, 2002, that all other questions proposed in the memo, of appeal do not arise as they are mainly questions of fact. We have accordingly confined the hearing of this appeal on the aforesaid two questions of law as framed in the order dated August 6, 2002, by this court. Mr.....
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....o the satisfaction of the Assessing Officer or the method of accounting employed is such that in the opinion of the Assessing Officer the income of the appellant could not be properly deduced from such accounts maintained by the appellant. Thus, it is only in a case where accounts were not correct or complete or where accounts are correct and complete but the method employed in such accounting is not such as to enable the Assessing Officer to deduce the income of the appellant properly, the assessment of the income of the appellant could be made in such manner as the Assessing Officer may determine. The case of the appellant was that he had maintained the accounts correctly and the accounts were also complete and therefore his income. We have seen that both the Assessing Officer and the Commissioner of Income-tax (Appeals) in their respective orders took the view that the accounts of the appellant were not correct and complete. Aggrieved by the said finding of the Assessing Officer and the Commissioner of Income-tax (Appeals), the appellant had gone up in appeal before the Tribunal and urged that the accounts of the appellant had been correctly maintained and the Tribunal, although....
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....1A) of the Act even for the purpose of determining the rate of income-tax that is applicable to the income of the appellant. Mr. Jain learned counsel appearing for the Department, on the other hand, submitted that the agricultural income of the minor is not being included in the income of the appellant for the purpose of levying any income-tax on the same but has been included by the Assessing Officer only for the purpose of determining the rate that is to be applicable to the income of the appellant. He submitted that since the Finance Act, 1973, every Finance Act has been making such provision for taking into consideration the agricultural income of the assessee for the purpose of determining the rate that would be applicable to the income of the assessee. He further submitted that section 64 (1A) of the Act expressly provides that in computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child. Section 64(1A) of the Act is quoted herein below: "64.(1A) In computing the total income of the any individual, there shall be included all such income as arises or accrues to his minor child ..." The language of....