Law:

Section:

Section 145 of the Income-tax Act, 1961 - Method of accounting - Estimation of profit Where assessee liquor dealer had agreed before Commissioner (Appeals) for application of same gross profit rate as was applied for preceding year, in an appeal to High Court assessee could not be permitted to resile from its earlier stand [A.Y 1994-95] The assessee-dealer was a liquor contractor dealing in sale and purchase of country liquor as L-14 retail vend. For the relevant assessment year, it had declared a gross profit rate of 3.76 per cent. However, during the course of the assessment proceedings, the said rate was considered to be low, as compared to other liquor vends. Accordingly, the Assessing Officer applied a gross profit rate of 5 per cent, which resulted in an addition of Rs.4,63.102 to the income declared by the assessee. The Tribunal, relying on its earlier decision in respect of the assessment year 1993-94, estimated the gross profit rate at 5 per cent. Held that it was evident from the record that before the Commissioner (Appeals), it was pleaded on behalf of the assessee that the facts of the instant case were similar to the facts prevailing in the assessment year 1993-1994. In fact, accepting the stand of the assessee, the Commissioner (Appeals) had applied the same gross profit rate as was applied by the Commissioner (Appeals) in respect of the year 1993-94. Having accepted the order of the Commissioner (Appeals), it was too late in the day for the assessee to change its stance. Moreover, we do not find that any such plea was urged on behalf of the assessee. True that each assessment year is independent of each other, but when the case of the assessee itself was that there was no difference in the fact situation of the two assessment years, namely, 1993-94 and 1994-95 and on the basis whereof, it was successful in getting relief from the Commissioner (Appeals), it could not now be permitted to resile from its earlier stand. In the instant case, the facts in both the assessment years being similar, the Tribunal had applied the same gross profit rate in respect of the instant assessment year, as was applied in the immediately preceding assessment year.…

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