Law: Income Tax Act, 1922

Section: 13

[Income Tax Act, 1922 (XI of 1922)]...........Section 13, first proviso Rejection of accounts-Sales found to be fictitious and purchasers not established to be in existence-Book version rejected and addition to the declared income by invoking first proviso to Section 13-Whether arbitrary, capricious or ad hoc-Held no. B. Income Tax Act, 1922(XI of 1922)-Sections 13, 66-Rejection of accounts-Reference to High Court-Question of law or facts Question of rejection of accounts and invoking powers of computation of profits and gains on any other basis, whether a question of law or fact-Whether depends upon facts and circumstances of each individual case-Held eyes-Vague question, a pure question of fact and question not arising out of Tribunals order-Whether referable to High Court-Held no. The above review of case law clearly indicates that the question whether the Departmental authorities were justified in rejecting the account of the assessee and invoking the powers of computation of the profits and gains on any other basis is a question of law or fact depends upon the facts and circumstances of each individual case. No hard and fast rule can be laid down in this behalf. In the present case the Income Tax Officer had applied his mind to the question of sales and upon cogent reasons as mentioned in the foregoing part of this , came to conclusion that sales were fictitious and that the purchasers were not established to be in existence. The whole question was once again re-examined in appeal by the Appellate Tribunal which also assigned good reasons for maintaining the Endings of the Assessing Officer. It cannot, therefore, be contended that the additions made by the Department were arbitrary, capricious or ad hoc, The Appellate Tribunal has observed that the Assessing Officer was right in rejecting the sales shown in the account on account of the failure of the assesses to produce the purchaser and the fact that no evidence was forthcoming to even prove their existence. If upon enquiry the Assessing Officer found the sales to be fictitious, he was apparently justified in invoking the proviso to Section 13 in order to determine the true profits and gains on the basis…

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