BRIJ MOHAN BANSAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) CHANDIGARH in ITA No. 813/Chd/2004 in respect of the asst. yr. 2000 -01 proposing following substantial questions of law :

(2.) RETURN of the assessee was processed under s. 143(1) of the IT Act, 1961 (for short, "the Act") and questionnaires were served on the assessee. Business of the assessee was purchase of timber and sale thereof in the form of batons, sleepers and crates, etc. The assessee was also supplying crates to the Government organizations. GP rate declared by the assessee was 3.83 per cent as against 8.59 per cent for the previous year. The AO rejected the books of account and made best judgment assessment by applying GP rate of 10 per cent on sales of Rs. 50,74,876 and GP rate of 6.5 per cent on sale of wooden crates worth Rs. 2,89,92,375 for the following reasons :

(3.) THE AO disallowed telephone expenses to the extent of Rs. 5,000 for personal use in the business record; sum of Rs. 15,000 out of claim towards labour charges; Rs. 8,254 (25 per cent) out of car expenses and Rs. 4,000 out of claim for miscellaneous expenses since the assessee did not have the record.