1981 (4) TMI 82

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....unal has stated this case pursuant to an order of this court under s. 256(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act") and has referred the following question for opinion of the court: "Whether, on the facts and in the circumstances of the case, the revenue is justified in rejecting the books of account of the assessee and proceed to estimate the sales as also the rate of gr....

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....ccount and 5 per cent. in mill-made cloth account. Thereby the gross profits were found to be Rs. 92,713 as against Rs. 73,570. The rejection of accounts was upheld in appeal by the AAC as also the Tribunal. The Tribunal, however, reduced the estimates. The small addition in the turnover is not seriously disputed before us by Mr. Mohanty for the assessee. It is, however, contended that there....

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....forum of fact. In the absence of that reason it was open to the ITO to discard the book results of loss and to fall back upon past records, Since the assessment of gross profit is within reasonable limits, supported by records of the assessee itself in respect of other years, we do not think, the assessee is justified in challenging the action of the revenue. There may be some force in the asse....