1990 (11) TMI 129

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.... REDDY C. J. -Under section 256(1) of the Act, the Tribunal has referred the following two questions : " 1. Whether, on the facts and circumstances of the case, the Incometax Appellate Tribunal was right in holding that the assessee has failed to discharge its onus within the meaning of the Explanation to section 271(1)(c) of the Act and was liable to penalty for concealment of income ? 2. W....

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....e net profit at 3%. His case was that he did not maintain any accounts. The Income-tax Officer, however, did not accept the estimate. He estimated the sales turnover at Rs. 12,40,000 and determined the net income at Rs. 80,600. The assessee's appeals to the Appellate Assistant Commissioner and the Appellate Tribunal proved unsuccessful. The Income-tax Officer initiated proceedings for penalt....

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....l referred only the aforesaid two questions observing that the other questions were implicit in the questions referred. A perusal of the order of the Tribunal shows that the Tribunal was not prepared to accept the petitioner's plea that he did not maintain accounts. It observed, and, in our opinion justifiably, that a businessman, having turnover of Rs. 11 lakhs, would not but have maintained a....

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....tax Officer has no alternative except to make an estimate. Indeed, the assessee himself had returned his income on the basis of estimate. The Income-tax Officer could not have done otherwise. The explanation offered by the assessee has been rejected by both the Inspecting Assistant Commissioner and the Tribunal. We are of the opinion that the approach of the Tribunal is in accordance with law and ....