2006 (11) TMI 198

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.... Income-tax Appellate Tribunal is justified in upholding the order of the Assessing Officer as well as the Commissioner of Income-tax, rejecting the books of account and applying section 145(3) of the Act ibid, to determine the total income of the assessee ? (ii) Whether the estimate of the profit despite the assessee maintaining regular accounts for business duly audited by chartered accountant was justified ? (iii) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is justified in upholding the order of the Commissioner of Income-tax applying a gross profit rate of 5.5 per cent. on the sales made to the Government/semi-Government agencies, against the returned gross profit rate of 3....

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....tes was of Rs. 2.89 crores as against sale of timber of Rs. 50.74 lakhs. (iv) Comparable sales were of the gross profit rate on 13.15 per cent. 3. The Assessing Officer disallowed telephone expenses to the extent of Rs. 5,000 for personal use in the business record ; the sum of Rs. 15,000 out of claim towards labour charges Rs. 8,254 (25 per cent.) out of car expenses and Rs. 4,000 out of claim for miscellaneous expenses since the assessee did not have the record. 4. On appeal, the Commissioner of Income-tax (Appeals) partly accepted the claim of the assessee by reducing the gross profit rate from 10 per cent. to 8.53 per cent. for trading turnover and from 6.5 per cent. to 5.5 per cent. on sale of wooden crates apart from relief o....

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....CIT [1969] 73 ITR 192 (P&H). (3)  Jindal Aluminium Ltd. v. Deputy CCT [1999] 115 STC 257 (Karn) (4)  Mani and Co v. CIT [1995] 213 ITR 563 (Ker) (5)  Joseph Thomas and Bros. v. CIT [1968] 68 ITR 796 (Ker). (6)  Tara Chand Hari Ram v. Sales Tax Tribunal [1972] 30 STC 342 (P&H). (7)  CIT v. K. Y. Pilliah and sons [1967] 63 ITR 411 (SC). (8)  Polisetti Subbaraidu and Co. v. CIT [1968] 69 ITR 738 (AP). 9. In St. Teresa's Oil Mills v. State of Kerala [1970] 76 ITR 365 (Ker), it was observed the accounts maintained in the course of business have to be accepted as correct unless the same were unreliable or incomplete. In the present case, the accounts having been found to be incomplete or not main....