Smt. Krishna Babbar vs Cit
2002 Latest Caselaw 732 Del

ORDER

This appeal is directed against the order dated 10-9-2001 passed by the Tribunal.

2. Brief facts necessary to dispose of the appeal are recapitulated as under :

2. Brief facts necessary to dispose of the appeal are recapitulated as under :

In this case admittedly the books of account of the impugned assessments were not complete till the date of search, i.e., 1-8-1988. The Assessment Officer has invoked section 145(2) of the Income Tax Act, 1961. The action of the assessed was upheld by the Tribunal.

3. In the assessment year 1987-88 the assessed had declared gross profit rate at 0.9 per cent and in the assessment year 1986-87 the gross profit rate was around 0.78 per cent. In the absence of relevant material on record, the assessing officer applied gross profit rate at 1.5 per cent. This rate was found to be on higher side by the Tribunal. The Tribunal correctly held that, in the facts and circumstances of this case, the assessing officer should have applied gross profit rate at 0.9 per cent. The Tribunal while setting aside the order of the Commissioner (Appeals), had directed the assessing officer to recalculate the additions after applying the gross profit rate at 0.9 per cent on total sales of the assessed.

3. In the assessment year 1987-88 the assessed had declared gross profit rate at 0.9 per cent and in the assessment year 1986-87 the gross profit rate was around 0.78 per cent. In the absence of relevant material on record, the assessing officer applied gross profit rate at 1.5 per cent. This rate was found to be on higher side by the Tribunal. The Tribunal correctly held that, in the facts and circumstances of this case, the assessing officer should have applied gross profit rate at 0.9 per cent. The Tribunal while setting aside the order of the Commissioner (Appeals), had directed the assessing officer to recalculate the additions after applying the gross profit rate at 0.9 per cent on total sales of the assessed.

4. The order passed by the Tribunal is just and proper. No interference is called for. The appeal is, accordingly, dismissed. The parties are directed to bear their own costs.

4. The order passed by the Tribunal is just and proper. No interference is called for. The appeal is, accordingly, dismissed. The parties are directed to bear their own costs.