DINANATH DUBEY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN accordance with the direction given by this court under Section 256(2) of the INcome-tax Act, 1961, the Tribunal has stated the case and referred for the decision of this court the following question of law, viz. :

(2.) THE relevant assessment year is 1972-73. THE assessee is a firm carrying on business of executing contracts for transporting and loading of goods at the Bhilai Steel Plant. THE assessee utilised hired transport for the work of transporting goods in addition to utilising its own fleet of four trucks.

(3.) THE contention of the learned counsel for the assessee is that the Tribunal was not justified in reversing the Appellate Assistant Commissioner's finding on the question of loss resulting from plying of the assessee's trucks claimed at Rs. 35,224. It is urged that the Appellate Assistant Commissioner's finding on this question, being based on cogent reasons, could not be reversed on the only ground stated by the Tribunal. We are unable to accept this contention. THE Tribunal has given detailed reasons in paras. 9 to 12 of its order (annexure C) dated December 12, 1974. It has been mentioned that the conclusion reached by the Tribunal is based on the rate applied to the assessee's case during the earlier years' assessments which were treated as comparable for this purpose. Rejection of the books of account of the assessee not being in controversy, application of the rate of profit in accordance with that applied in the earlier years' is really a question of fact in the present case. At any rate, there is nothing to indicate that the Tribunal's finding on this point is unjustified. This reference has, therefore, to be answered against the assessee.