DWARKA PRASAD BAJAJ Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this application of Dwarka Prasad Bajaj, the assessee, made in the above reference a rule nisi was issued calling upon the Commissioner, West Bengal-I, to show cause why the amount of tax in dispute in respect of the assessment years 1967-68 and 1970-71 which are the subject-matter of Certificate Cases Nos. 347/TR-ASL/74-75, No. 321/ TR-ASL/75-76, No. 346/TR-ASL/74-75 and 2987/TR-ASL/72-73 and the notice for settling a sale proclamation dated the 14th September, 1978, issued by the TRO, Asansol, should not be stayed till the disposal of the above reference. Pending the dispasal of the rule the Commissioner and the TRO, their servants and agents were restrained from giving any effect to and/or taking any steps whatsoever in pursuance of the said certificate cases and the said notice for settlement of sale proclamation. The TRO was farther restrained from realising the disputed amounts of tax in respect of the said assessment years during the pendency of this application.

(2.) For the assessment year 1967-68, the petitioner in its business of manufacture of mustard oil, disclosed the gross profits in its trading account showing a return of 2.60%. The respective yields of oil, oil cake and gad as also loss or shortage at 2.17% in the oil seeds due to refraction and in transit were also disclosed. In the assessment year 1970-71, gross profit in the petitioner's trading account was similarly disclosed oh the basis of a return of 2.61%. The respective yields of oil, oil cake and gad and loss or shortage of seeds at 1.86% were shown.

(3.) In the assessment year 1967-68, the ITO while accepting the yield, held that the shortage claimed was excessive and that the gross profits were understated. He added the sum of Rs. 60,020 disallowing the excess shortage claimed, another sum of Rs. 16,925 to the gross profits on estimate and a further sum of Rs. 15,928 in the gad account. Similarly, for the assessment year 1970-71, the ITO while accepting the declared yield added the sum of Rs. 68,611 on account of excess shortage including gad and Rs. 67,653 to the gross profits.