1951 (10) TMI 27

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.... Swami, Advs. For Respondents : C.S. Rama Rao Sahib, Adv. JUDGMENT Satyanarayana Rao, J. 1. This application under Section 66(2) of the Indian Income Tax Act relates to the assessment year 1943-44, accounting year ending with March 1943. The assessee is a firm carrying on business in cloth. It manufactures and also sells dyed cloths. During the assessment year the assessee returned a p....

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....oceeded to estimate the profits on the basis of the comparable cases of profits made by other merchants in the locality and in the district which range between 15 to 20 per cent. The result was the Income Tax Officer arrived at the result that 15 per cent. profit on the turnover of the retail sales was reasonable in the circumstances. This decision of the Income Tax Officer was accepted on appeal ....

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.... that the profit was 17 1/2 per cent. The further complaint, however, is that the out turn of those merchants and the magnitude of the business and whether the contracts under which the goods were purchased were forward contracts or ready contracts--all those details should have been furnished to the assessee and as this was not done, the estimate made by the department should not be accepted. We ....