COMMISSIONER OF INCOMTAX Vs. GARG TRADING CO

JUDGEMENT

(1.) THIS is an appeal by the Revenue preferred under Section 260A of the Income Tax Act, 1961, (for brevity `the Act'). Be it noted, the appeal was barred by limitation. Notices were issued to the assessee-respondent and after hearing the assessee, the delay was condoned.

(2.) WE have heard Mr. Sanjay Lal, learned counsel for the revenue and Mr. H.S. Shrivastava, learned counsel for the assessee on the question of admission.

(3.) THE respondent-assessee deals in `Tendu patta' and carries on tobacco business. For the assessment year 1991, the assessee offered income in respect of tendu patta business on the basis of provisions of Section 44AC. For the relevant accounting year the assessee had purchased tendu patta from the Conservator of Forest, Shipuri for Rs. 50,88,900/-and returned the income therefrom at Rs.20,80,205/- by applying profit rate of 35%. Keeping in view the provisions as contained in Section 44AC, the assessing officer did not accept the claim of the assessee and came to hold that the said provision was not applicable to the present case.