High Court Of Rajasthan
Kansara Bearings (P) Ltd. vs. Assistant Commissioner Of Income Tax
Sections 260A
Asst. Year 1990-91
Rajesh Balia & O.P. Bishnoi, JJ.
IT Appeal No. 14 of 2003
1st May, 2003
Counsel Appeared
Vineet Kothari, for the Appellant
JUDGMENT
RAJESH BALIA, J. :
Having heard learned counsel for the appellant, we are of the opinion that in this appeal no question of law much less substantial question of law arises for consideration.
2. The assessee’s books of account have been rejected as not disclosing the correct results for the reason that though the assessee has furnished the details about the sale of raw-material, but could not produce co-related details about the finished products. The assessing authority has also found that the gross profit rate during the current year showing trading result was far below the gross profit rate shown in the previous year. These two grounds led to the satisfaction of the AO that books of account did not disclose the true and correct state of affairs and the correct results. After rejecting the books of account, he resorted to s. 145(2) of the IT Act, 1961, to make best judgment assessment and applied gross profit rate of 28.99 per cent prevailing during the immediately previous year to the previous year in consideration and consequently, made additions of Rs. 5,40,138.
On appeal, CIT(A) partly allowed the appeal by reducing the turnover byRs. 9,763, but did not accept the explanation furnished by the assessee for lower GP rate, applied by the AO and its contentions about rejection of books and resorting to best judgment assessment under s. 145(2) were also rejected. Ultimately; the Tribunal also found that it was a case where the books of account have rightly been rejected by the AO, but considering the material before it, including reduction in gross profit rate during the current year as comparative to last year; the increased sale figures shown by the assessee himself to be 48 per cent over previous year sales; and increase in the cost of raw-material without corresponding increase in the sale price; has held that in the facts and circumstances under best judgment the result shown by the assessee requires to be increased. However, instead of applying a flat gross profit rate, a lump sum addition of Rs. 2 lacs have been sustained by taking into consideration the relevant trading result shown by the assessee.
In the aforesaid circumstances, we are of the opinion that the finding reached by the Tribunal is a finding of fact on appreciation of relevant material and does not give rise to any question of law.
Accordingly, the appeal fails and is hereby dismissed in limine.
[Citation : 270 ITR 235]
