RAJESH BALIA, J. - (1.) HEARD learned counsel for. the appellant. In spite of service no one present for the respondents.
(2.) THIS appeal is directed against the order of Tribunal, Jodhpur Bench, Jodhpur, dt. 27th Oct., 2003. The substantial question of law framed at the time of admission for consideration in this appeal is as under : 'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the additions which have been made after invoking the proviso to Section 145 of the Act and whether the finding of the learned Tribunal is perverse ?' The facts of the present case are that the assessee -respondent is a liquor contractor for wholesale and retail sale for both country liquor and Indian made foreign liquor. The assessee has submitted his return for asst. yr. 1993 -94 showing his total income as 18,27,180 as per P&L; a/c which was reduced (increased) to Rs. 22,73,630 while issuing intimation under Section 143(1)(a) after making certain adjustment.
(3.) DURING the course of regular assessment, the AO found that while purchases of country liquor as well as Indian made foreign liquor are duly vouched, the verifiable retail sales remain totally unvouched, the result shown by the assessee cannot be accepted. He thereafter rejected the books of account and resorted to Section 145(2) of the IT Act, 1961, and the best judgment assessment was made. The AO made certain additions in the total income from business of country liquor as well as Indian made foreign liquor. While assessing the income of the firm, profits and gains for the business of country liquor, the AO resorted to apply net profit (NP) rate on the turnover which he determined on the basis of purchase price of the country liquor by applying the NP rate. The NP rate was determined by the AO on the basis of NP shown by a dealer of another area. On the other hand, additions in profit and gains from Indian made foreign liquor were made by applying GP rate on total purchase price. However, after applying GP rate, no exercise for adjustment of allowable expenditure was made.;