COMMISSIONER OF INCOME TAX (CENTRAL) Vs. GOBIND RAM

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 260A of the Income-tax Act, 1961 (in short, "the Act") against the order dated 8.4.2005, Annexure A. 4 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (in short, "the Tribunal") in I.T.(SS)A. No. 15(ASR)/2001 for the block period 1.4.1988 to 22.9.1998, proposing to raise following substantial questions of law:--

(2.) We have heard learned counsel for the parties and perused the record.

(3.) This Court while admitting the appeal on August 22, 2006 noticed that in so far as question No. (i) is concerned, the same was covered against the revenue. A Division Bench judgment of this Court in CIT v. Smt. Santosh Jain, 2008 296 ITR 324had adjudicated the said question in favour of the assessee and against the revenue holding that where the income of the assessee has been computed by applying gross profit rate, there is no need to invoke the provisions of Section 40A(3) of the Act as the gross profit rate takes care of expenditure incurred otherwise than by way of cross cheques also.