COMMISSIONER OF INCOME TAX Vs. RAJNI KANT DAVE

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under Section 256 (1) of the Income Tax Act, 1961, (hereinafter referred to as "the Act ") for opinion of this Court.

(2.) The present Reference relates to the Assessment Year 1991-92.

(3.) Brief facts of the case are as follows: The assessee is an individual having income from carrying on services of pathology, X-ray, and ultrasound tests. The assessing officer noticed that a register of receipts of X-ray tests and Ultrasound tests was maintained. According to him, there were discrepancies in it inasmuch as no stock register of raw material was maintained. The closing stock in consumption record showed some variation with closing stock as per inventory; there was no satisfactory explanation why X-ray films and ultrasound films were more than the number of patients were used, some reports were prepared on the basis of screen display, but cash receipts were not issued, daily balances were not struck in the cash book and separate figures of consumption of ultrasound and X-ray films were not available. The Assessing Officer rejected the book results under proviso to Section 145(1) of the Act and enhanced receipts on estimate resulting in an addition of Rs.9,14,675/-.