COMMISSIONER OF INCOME TAX Vs. BANWARI LAL BANSHIDHAR

JUDGEMENT

(1.) Heard counsel for the parties.

(2.) The Income-tax Appellate Tribunal (Allahabad Bench), referred the following questions for the opinion of this court under Section 256(2) of the Income-tax Act, 1961 (briefly, "the Act") I

(3.) The assessee, a registered firm, derives income from sale of Ayurvedic medicines. The proceedings relate to the assessment year 1971-72. The assessee disclosed a gross profit rate of 11 per cent, in respect of sales both at the head office and in the branch office at Rs. 1,01,020 and Rs. 90,547, respectively, as against gross profit rate of 13 per cent, shown in the last year.