1995 (1) TMI 57

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.... 1.Whether, on the facts and in the circumstances of the case, there was material on record to justify the enhancing of the estimate sales of the assessee to Rs. 9,10,000 and in applying gross profit rate of 21 per cent. ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in sustaining the addition of Rs. 20,714 as the income of the assessee from undisclosed sources or the said amount should have been added to the trading account of the assessee or telescoped with the trading account of the assessee keeping in view the facts that intangible additions have been made ? " In the return for the assessment year 1971-72, the assessee has disclosed total sales of Rs. 8,66,179 and h....

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....---------------------------- Cut Assessment Assessment stones year 1970-71 year 1971-72 --------------------------------------------------------------------------------------------------------------------------------------------------- Rs. Rs. (i) Exports 2,04,942 7,33,599 (ii) Local sales 30,111 25,104 (iii) Branch transfer 30,299 (iv) Rough stones sales 7,38,918 1,04,252 -------------------------------------------------------- 10,04,270 8,62,955 ---------------------------------------------------------- Gross profit 16,15,802 1,37,285 Gross profit rate 16.5 per cent. 16.0 per cent. ---------------------------------------------------------------------------------------------------------------------....

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.... what can be the rate, that has to be seen from the material on record. The facts are not in dispute that in 1969-70, the gross profit rate was applied at 19.3 per cent. which was finally accepted at 20 per cent. and in 1970-71 it was 18 per cent. This year the gross profit rate has been estimated at 25 per cent. and the facts are also not in dispute that this year the export sales are three times and that has gone up from Rs. 2,04,942 in the year 1970-71 to Rs. 7,33,599 in the assessment year under consideration. It is obvious that he earned more profits on export sales than the local sales. In view of these facts available on record, the estimate of the gross profit rate at 25 per cent. in the year under consideration cannot be said to be....