RAJESH BALIA, J. - (1.) HEARD learned counsel for the parties.
(2.) THE Income Tax Appeal Nos. 39 of 2004 and 48 of 2004 arise out of the order passed by the Tribunal, Jodhpur Bench, Jodhpur, dated 15 -7 -2003, deciding the cross -appeals filed by the revenue as well as by the assessee relating to assessment for the assessment year 1994 -95. Hence, they are being heard and decided together. The respondent -assessee is a liquor contractor who has acquired right to trade in alcohol, which is exclusive privilege of the State, relating to retail in bonded country liquor as well as Indian made foreign liquor (IMFL) for the area Jodhpur, Bilara, Shergarh, Baori and Mathania for the accounting period 1993 -94 relevant to the assessment year 1994 -95. On 9 -8 -1995, the assessee filed his return declaring a total income of Rs. 60,83,130. After the return was processed under section 143(1)(a) of the Income Tax Act, 1961, notices under sections 142(1) and 143(3) were issued for framing regular assessment. During the course of inquiry, the assessing officer was of the opinion that while cost of purchases made by the assessee is determinable and also the stocks, but sales being unvouched, as per the auditors report, are not verifiable and there is no control on the price charged by the assessee on the alcohol vended by him, hence, it is not possible to arrive at correct profits on the basis of books of account maintained by the assessee. Hence, he rejected the books of account under section 145(2) and made a best judgment assessment on the basis of material available with him.
(3.) THE assessing officer vide his order dated 30 -9 -1996, has made additions of Rs. 28,40,586 to the net income from the business of country liquor by adopting estimated NP rate or cost incurred by the assessee and Rs. 23,77,744 in case of IMFL as a result arrived at by applying GP rate to an estimated turnover by taking figures of the cost price and the estimated gross rate of profit at the rate of 18.50 per cent. Thus, addition of Rs. 52,18,330 was made in the result declared by the assessee on the aforesaid two counts.;