K T SAOJI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question has been referred at the instance of the assessee :

(2.) THE assessee deals in medicines. He sells products manufactured by different manufacturers such a Pfizer, Warner, etc. For the assessment year ending 1967, the assessee showed a gross profit of Rs. 55,484 as per his account books to which the ITO made an addition of Rs. 4,917. While the assessee's statement about the rate of commission was accepted in respect of Pfizer and Warner products, it was not so done in respect of the commission given by the other companies. THE assessment order of the ITO gives no reason as to why the book entries were rejected in part and on what basis a conclusion about commission paid by other companies being 12 per cent was arrived at. Aggrieved by the addition of Rs. 4,917, an appeal was carried to the AAC. It came to be dismissed on the ground that whereas agreements in respect of two companies were produced on record, agreements entered into with the other companies were not produced. Further appeal was carried to the Tribunal. On the date of hearing, none appeared for the appellant. THEre was an application for adjournment but it came to be rejected. THE Tribunal quoted part of the order of the AAC and observed " we agree with this reasoning".