COMMISSIONER OF INCOME TAX Vs. DHANI RAM

JUDGEMENT

(1.) THIS appeal has been preferred by the Revenue under s. 260A of the IT Act, 1961 (for short, "the Act") against the order proposing to raise following substantial questions of law :

(2.) THE AO asked the assessee to explain why addition be not made, on account of unaccounted sales to Shri Jagdish Chawla Prop. M/s Sai Baba Fruit Co., to the returned income revealed from the documents seized during the survey by the AO and addition of Rs. 1,22,604. It was observed that the assessee had made investment but the same has not been explained and accounts were not produced. 60 per cent of the peak investment was treated as income.

(3.) ON appeal, the CIT partly set aside the addition. It was also held that instead of taking 60 peak investment as income, the amount of the profits assessed on the basis of commission at the rate of 5 per cent of the total sale should be added. The Tribunal upheld the said view. The conclusion of the Tribunal is as under :