CIT Vs. LACHMAN DASS BHATIA

JUDGEMENT

(1.) In these appeals by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act'), the following substantial questions of law were framed on 14 th May, 2012 and the appeals were heard: -

(2.) The common question for all the three assessment years, namely, 2004-05, 2003-04, 2000-01 relates to the addition towards gross profits. The brief facts in this connection may be noted. The respondent-assessee is an individual engaged in the business of Hing, Jeera etc. On 13.12.2005 there was a search on the assessee's premises under Section 132 of the Income Tax, Act, 1961, hereinafter referred to as the Act. Several connected persons and members belonging to the same group were also subjected to search on the same date. Proceedings for assessment of the assessee were initiated under Section 153A and the assessee was called upon to furnish the returns of income. Notices under Section 142(1) and Section 143(2) along with the questionnaire were also issued to the assessee. It is seen from the assessment orders that the assessee did not effectively comply with the notices/questionnaire. The Assessing Officer, therefore, proceeded to complete the assessments for the years in question on the basis of the material on record.

(3.) One of the additions made by the Assessing Officer was the addition towards low gross profits earned by the assessee. He noted that the assessee had declared gross profits rates as follows:- <FRM>JUDGEMENT_3483_ILRDLH22_2012_1.html</FRM>