RAJESH BINDAL, J. - (1.) THE Revenue has filed the present appeal under s. 260A of the IT Act, 1961 (for short "the Act"), against the order passed by the Income -tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), in ITA No. question of law : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in determining the income at Rs. 8,43,207 by applying net profit rate at 4.96 per cent comparing it with comparable cases as against income determined by the AO at Rs. 24,04,500 by applying the occupancy rate based on the field enquiries in the case of the assessee."
(2.) BRIEFLY the facts are that the respondent -assessee -company is engaged in the business of transport. The return for assessee was required, keeping in view certain discrepancies found, a notice under s. 143(3) of the Act along with notice books of account maintained by the assessee, the same were rejected and estimation of the income of the assessee was made considering the occupancy rate of 67 per cent. The assessee had shown gross receipts of Rs. 1,45,97,757 whereas receipt on the basis of 67 per cent occupancy came to be Rs. 1,75,24,687. The difference of Rs. 29,29,500 was added to the income of the assessee and reducing the loss of Rs. 5,25,000 claimed by the assessee, the assessment was framed at a net income of Rs. 24,04,500.
(3.) AGGRIEVED against the order of the assessment the assessee preferred an appeal. The CIT(A) partially accepting the additions by applying occupancy rate of 65 per cent, as against 67 per cent Aggrieved against the order passed by the CIT(A) the assessee as well as the Revenue filed appeals before the Tribunal. The Tribunal, while dismissing the appeal of the Revenue and accepting that of the assessee, directed for estimation of the net profit of the assessee @ 4.96 per cent, of the gross receipts and in terms thereof net income of the assessee was determined as Rs. 8,43,207 as against the net loss of Rs. 5,25,000 shown by the assessee.;