PONKUNNAM TRADERS Vs. ADDITIONAL INCOME TAX OFFICER

JUDGEMENT

(1.) In this proceeding the petitioner seeks to quash Ext. P1, an order of assessment passed by the Income Tax Officer, the 1st respondent, on 22-10-1964 as well as the order passed by the Commissioner of Income Tax, the 2nd respondent, in revision, from the appellate order from Ext. P1.

(2.) The petitioner was a dealer in hill produce. We are concerned in this case with the assessment of the petitioner to income tax for the assessment year 1964-65 in respect of his income from transactions in dry ginger and pepper. The petitioner stated in the return that he made a net profit of 5% on the turnover of dry ginger and 1 1/2% on the turnover of pepper. The Income Tax Officer was not satisfied with the correctness of the account produced by the asses see in support of the return in this respect and so he rejected the account and made a best judgment assessment under S.143(3) of the Income Tax Act, 1961, hereinafter referred to as the Act, adding Rs.10,000/- to the Income of the asses see in respect of his transactions in dry ginger and Rs. 1,000/- in respect of his transactions in pepper, estimating the profit in dry ginger at 12% and in pepper at 2% of the turnover. From this order the petitioner filed an appeal before the Appellate Assistant Commissioner. That was dismissed. The petitioner then filed a revision before the 2nd respondent. he accepted the finding of the Income Tax officer as regards the income of the petitioner from his transactions in dry ginger, but deleted the addition of Rs. 1,000/- in respect of the alleged income from the pepper transactions.

(3.) In the order of assessment the Income Tax Officer said that after rejecting the account of the assessee he made enquiries and that he was satisfied from the materials gathered by him, namely, the profits made by other dealers carrying on similar businesses and from the profits disclosed in the return for the previous year by the petitioner himself that the profit of the petitioner from transactions in dry ginger is 12% of the turnover.