Law:

Section:

Section 145, read with section 143, of the Income-tax Act, 1961 - Method of accounting - Rejection of - Assessment year 1997-98 - Assessing Officer rejected books of account of assessee and made assessment by applying a gross profit rate of 32.95 per cent - Commissioner (Appeals), on appeal reduced gross profit rate to 25 per cent - On further appeal, Tribunal held that addition should be reduced by applying gross profit of 23.5 per cent - Whether since assessee was not able to controvert that wastage claimed during year was higher when compared to earlier years, authorities below were justified in rejecting book version and making an estimated addition to trading account - Held, yes Section 234B of the Income-tax Act, 1961 - Interest chargeable - Assessment year 1997-98 - Tribunal had accepted assessee's prayer for reduction of interest consequent to reduction in income and matter was remanded to Assessing Officer for granting consequential relief - Whether since claim of assessee had been accepted by Tribunal, nothing more remained for consideration by the instant High Court - Held, yes HELD The issue regarding addition to the trading account was a pure question of fact. Counsel for the assessee had not been able to controvert that the wastage claimed during the year was higher when compared to the earlier years. In view of that fact, the authorities below were justified in rejecting the book version and making an estimated addition to the trading account. The question as to what should be the gross profit rate is a matter of estimate and essentially a question of fact. The High Court in its appellate jurisdiction would not substitute its own estimate for the estimate made by the Tribunal unless it is shown that the estimate of the Tribunal is totally arbitrary or perverse.[Para 5] As far as the dispute about levy of interest under section 234B was concerned, the Tribunal had accepted the assessee's prayer for the reduction consequent to the reduction in income. The matter had been restored to the Assessing Officer for granting consequential relief. Since the claim of the assessee had been accepted by the Tribunal, nothing more remained for consideration by…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492