- (1.) WE have heard learned Counsel for the parties.
(2.) THE assessee was awarded a Samman Patra under the scheme for honouring the taxpayers from the categories of business, profession and salaried people who are highest taxpayers having income about the minimum level prescribed for a continuous period stated in the scheme which was contained in the Budget Speech delivered by the Finance Minister on 1st June, 1998. The scheme, inter alia, carried incentives, one of which was that the assessment of Samman Patra Card holders may not be subjected to scrutiny for a period of three years except under very special circumstances and that too after obtaining the prior approval of the CIT/Chief CIT. In the present case, subsequent to the year of honouring the petitioner assessee With the Samman Patra, his case was subjected to scrutiny and the finding that the details of sales as well as certain expenses in the books of account of the assessee are not verifiable and the same were rejected and the best judgment assessment was made. Specific plea about the aforesaid incentive was not before the AO, however, it was subsequently raised. However, the Tribunal also noticed that there is no ground for invoking sub -para (ii) of para (4) of the aforesaid scheme on the ground that prior approval of the CIT/Chief CIT was not obtained before subjecting his case for scrutiny.
(3.) BE that as it may. The AO made certain additions by applying the GP rate on the sale figures disclosed by the assessee and disallowed the loss shown by the assessee in the accounts which was substantially reduced by the CIT(A). The CIT(A) maintained the marginal additions as well as it sustained the disallowance of loss to some extent.;