COMMISSIONER OF INCOME TAX Vs. PATNA TIMBER WORKS

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Patna Bench, has stated a case and referred it to this court under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on the following question of law :

(2.) I may take the necessary facts from the statement of the case. The assessee is a manufacturer of wooden electric boards and furniture. It filed the return showing an income of Rs. 29,508. Since the rate of gross profit shown in the trading account was low and the trading results were not verifiable, the Income-tax Officer made an addition in that account. After disallowing certain expenses, the total income computed by the Income-tax Officer chargeable to tax in the hands of the assessee was Rs. 80,586. The assessment was confirmed in appeal by the Appellate Assistant Commissioner. A copy of the assessment order of the Income-tax Officer is annexure "A" to the statement of the case.

(3.) RECENTLY this very Bench followed the earlier cases on the point and reiterated the law in the case of Commissioner of Income-tax v. Meghraj Ramchandra [1974] 97 ITR 559 (Pat). To the same effect is the law laid down by the Supreme Court in 4 more cases--all to be found in the 83rd volume of the Income-tax Reports. The cases are Hindustan Steel Ltd. v. State o] Orissa [1972] 83 ITR 26 (SC), Commissioner of Income-tax v. Bharat Engineering and Construction Co, [1972] 83 ITR 187 (SC), Commissioner of Income-tax v. N.A. Mohamed Haneef [1912] 83 ITR 215 (SC) and Commissioner of Income-tax v. Khoday Eswarsa and Sons [1972] 83 ITR 369 (SC). I may quote one more passage from the decision of the Supreme Court in the last case, which occurs at page 376 :