Law: Income Tax Act, 1922

Section: 13

Income tax Act (XI of 1922]---S. 13, proviso (1) Scope, and applicability Computation of income Rejection of account s Assessee doing business of paints and varnishes Proper books of accounts maintained by assessee Accounts rejected by Department on grounds of non maintenance, of daily stock register and of lowness of gross profit rate as compared with previous years Major sales effected by assessee to wholesales purchaser and small portion to retailers All purchases by assessee properly vouched ----Held, mere failure of assessee to furnish daily stock register or low gross profit rate was no ground for rejection of accounts by applying first proviso to S. 13 There must be material before Income tax Officer to lead him to conclusion that method employed was defective and case fell within proviso (1) to S. 13 of Act Since there was no material before Income tax Officer on basis of which he could reject accounts of assessee and compute income under first proviso to S. 13, Department, held, not justified in rejecting account version of assessee. Attaullah Khan v. Commissioner of Income tax P L D 1968 Dacca 881; Commissioner of Income tax, Bombay v. Sarangpur Cotton Manufacturing Company Limited (1938) 6 I T R 36 and Pandit Brothers v. Commissioner of income tax (1954) 26 I T R 159 ref. JUDGMENT NASIR ASLAM ZAHID, J. This judgment will dispose of I. 'C. It. No. 526/72 and I. T: R. No. 710/72 as the facts and points of law involved in both these cases are the same. The applicant in both the cases is Messrs M. E J. Hazari and Sons. 1. T. R. No. 526/72 relates to assessment years 1963 64. 1964 65 and 1965 66, whereas 1. T. R. No, 710/72 relates to assessment year 1966 67. The question referred to us in I. T. R. No. 526/ 72 for our opinion is as follows : "Whether in the facts and circumstances of the case the Tribunal was justified in law to uphold the rejection of the book results and computation of the assessee under the first provision to section 13 of the Income tax Act ?" In I. T. C. No. 710/72 three questions have been raised including the aforesaid question referred to us in I. T. R. No. 526/72. However, Mr. Ali Athar, learned counsel for the applicants, stated…

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