MOTIRAM PESUMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion:

(2.) THE material facts giving rise to this reference briefly are as follows: THE assessee is a partnership firm carrying on a business in potatoes and onions as wholesale dealer. While framing assessment for the assessment years 1975-76 to 1977-78, the ITO held that the account books maintained by the assessee were unreliable. THE ITO, therefore, made additions to the income disclosed by the assessee by applying a G.P. rate of 7.5% on estimated sales. On appeal by the assessee, the AAC partly allowed the appeal by reducing the G.P. rate to 6%. On further appeal before the Tribunal, the Tribunal directed the ITO to apply a G.P. rate of 6% on the declared sales of the assessee. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this court for its opinion.