1978 (4) TMI 112

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on Rs. 16,585 made to the book result, declared by the assessee, by the ITO. 2. The facts leading to this appeal are that the assessee is a forest contractor and has been assessed to tax by way of regular assessment from the earlier years. The status enjoyed by the assessee is that of a registered firm and the accounting period relevant to the assessment year 1968-69, in appeal before us, is 31....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... wood extracted and sold were maintained in terms of numbers and that the ITO had not pointed out any specific omissions or commissions by the assessee to justify the invocation of s. 145 in the case of the assessee. He, However, pointed out that maintaining of quantitative accounts, in terms of the numbers, was not the same as recording extraction of wood in terms of cft. and therefore, the ITO w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mate basis and therefore, the rejection is justified. 5. We have considered the rival submissions, perused the facts on record and are convinced that there is no jurisdiction for the sustenstion of the addition of Rs.16,585 made by the ITO by estimate of the turnover and the rate of profit for the year under appeal. The assessee is a forest contractor and the extraction of wood from the forest ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rgin of profit. This was explained by the assessee and this explanation has been recorded by the ITO in his impugned order wherein he states that taking into consideration the explanation of the assessee, the rate of profit would come upto 18 per cent as against 21 per cent of the last year. However, in the very next line and in the same breath the ITO rejects this explanation as not plausible wit....