VENKANNA P Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a hotelier and, with respect to the assessment year 1962-63, he disclosed a net income of Rs. 4,998. THE turnover concerning his sales amounted, according to his return, to Rs. 1,08,718 and the gross profit shown in the return was 22.3 per cent. of that turnover.

(2.) THE Income-tax Officer who did not accept the accounts produced by the assessee estimated the gross turnover to be Rs. 1,16,000 and he estimated the gross profits at 28 per cent. of that turnover.

(3.) IN this reference directed by this court under section 256(2) of the INcome-tax Act, 1961, the question of law which is before us reads :