Law:

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Section 145 of the Income-tax Act, 1961 - Method of accounting - Estimation of profit - Assessment year 1972-73 - Assessee utilised hired transport for work of transporting goods in addition to utilising his own fleet of four trucks - Assessee's books of account showed loss in plying all four trucks - Tribunal, however, rejected books of account and estimated income from plying of assessee's own trucks on basis of rate of profit applied to assessee's case during earlier years - Whether any referable question of law arose from Tribunal's order - Held, no FACTS The assessee was a firm carrying on business of executing contracts for transporting and loading of goods. The assessee utilised hired transport for the work of transporting goods in addition to utilising its own fleet of four trucks. According to the books of account of the assessee, there was a loss in plying all the four trucks. The ITO rejected the books of account and estimated the income from plying of the assessee's own trucks as against the loss alleged by the assessee. The AAC accepted the assessee's claim of loss from plying of his own trucks. The Tribunal rejected the assessee's claim of loss from plying of its own trucks and accordingly reversal of the ITO's finding on this point by the AAC was set-aside. The assessee filed an application under section 256(1) which was rejected. On application under section 256(2) : HELD The conclusion reached by the Tribunal was based on the rate applied to the assessee's case during the earlier years' assessments which were treated as comparable for this purpose. Rejection of the books of account of the assessee not being in controversy, application of the rate of profit in accordance with that applied in the earlier years was really a question of fact in the instant case. At any rate, there was nothing to indicate that the Tribunal's finding on that point was unjustified. Consequently, the Tribunal was justified in setting aside the order of the AAC. Note : The case was decided against the assessee. V.S. Dabir for the Applicant. B.K. Rawat for the Respondent. JUDGMENT J.S. Verma, Actg, CJ.- In accordance with the direction given by this court under section…

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