1985 (11) TMI 2

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....is a reference at the instance of the assessee, under section 256(1) of the Income-tax Act, 1961, for answering the following questions of law, namely: "(i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in not applying a net profit rate on both the passenger hire and luggage hire receipts, thereby deviating from the method of determining income....

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....n income of Rs. 3,714 only from the business of plying buses. The Income-tax Officer, on a scrutiny of the account books, found serious irregularities and he rejected them and made a best judgment assessment in accordance with section 145(2) of the Act. The Income-tax Officer estimated the passenger receipts at Rs. 1,50,000 and the luggage receipts at Rs. 98,332. The Income-tax Officer computed pr....

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....sment after rejecting the assessee's books of account in accordance with section 145(2) of the Act is not in controversy at this stage and, therefore, the only question is whether the best judgment assessment actually made gave rise to the above questions of law on the facts found proved by the Tribunal. In our opinion, there is no ground for holding that the Tribunal's conclusion was unjustified.....

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....count of expenses in addition to the deduction given for expenses against the passenger receipts was called for and the deduction of Rs. 3,000 was given against the luggage receipts even then to cover any possible additional expenditure by way of coolie charges, if any, paid by the assessee to earn the luggage receipts. On these findings of fact, the conclusion reached by the Tribunal is fully jus....