RAJASTHAN WINE AGENCY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THOUGH the appeal was admitted on five substantial questions of law but Mr. Kasliwal, counsel appearing for the appellant -assessee submits that the effective issue is in question No. 3, which reads as under:

(2.) THE appellant is a partnership firm and derived income from sale of liquor. The appellant filed its IT return for the asst. yr. 1985 -86 declaring income of Rs. 50,000. A notice under Section 143 of the IT Act was issued to the appellant and the AO vide order dt. 29th March, 1990, while declining to accept the book result, assessed the net profit of the appellant -assessee at the rate of 3 per cent. The AO estimated the sales from Rs. 3,62,87,231 to Rs. 4,00,00,000, made an addition of Rs. 12,00,000 and assessed the income of the assessee as Rs. 18,60,224. Challenging this order of the AO, the appellant -assessee filed an appeal before the CIT(A). The CIT(A) vide its order dt. 23rd Oct., 1990 allowed the appeal, set aside the addition of Rs. 12,00,000 as made by the AO and remitted the case to the AO to consider the matter afresh,

(3.) HEARD , learned Counsel for the parties.