Law:

Section:

Section 145, read with section 256 of the Income-tax Act 1961 - Method of accounting - Estimation of profit - Assessment years 1973-74 and 1974-75 - Assessed derived income from plying of passenger buses and also received amounts towards fare charged for carrying luggage of passengers in said buses - ITO rejected book results and applied net profit rate - Amount towards luggage receipt was added by ITO in net profit for computing total income - Tribunal rejected assessee's contention that even on luggage receipt net profit rate should have been applied and recorded finding that receipt on transport of luggage did not involve any extra expenditure and thus entire amount towards such receipt should be added in computing net income - Whether finding of Tribunal being finding of fact no question of law arose from its order - Held, yes FACTS The assessee derived income from the business of plying passenger buses. The ITO rejected the book result. Acting under the proviso to section 145(1), a best assessment was made by estimating the optimum receipts and applying a net profit rate. The assessee also used to charge fare for carrying luggage of the passengers travelling in its buses. This amounts was added in the net profit by the ITO for computing the total income. The assessee's contention that even on the luggage receipt a net profit rate should have been applied and the entire receipt should not have been added as profit, was rejected by the ITO and the AAC. The Tribunal dismissed the assessee's appeal holding that the whole of the amount received on account of luggage was to be added in computing the net income because it involved no extra expenditure. On reference : HELD The Tribunal keeping in view the finding that the receipts on transport of luggage did not involved any extra expenditure, rejected the assessee's claim that some expenditure was involved in the transport of luggage also and the same should have been considered for determining the net profit from luggage receipts. Clearly the finding was one of fact and no question of law could arise therefrom. Note : The case was decided against the assessee. JUDGMENT Shukla, J.-This order shall also dispose of…

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