COMMISSIONER OF INCOME TAX Vs. S M BHATIA ASSOCIATES

JUDGEMENT

(1.) THE assessee-firm, S.M. Bhatia Associates, Chittorgarh, for the assessment year 1988-89, showed the gross income of Rs. 1,19,460, against which it claimed expenses like the salary to the supervisor, conveyance expenses, stationery charges, overtime payments made to the supervisory staff, depreciation, etc., and declared the net income at Rs. 69,525. No books of account were maintained by the assessee.

(2.) THE case of the assessee was that it received a fixed income by way of commission at four per cent. from J.K. Cement Company. THE Income-tax Officer applied the net profit rate of six per cent. on receipts from the work of supply of labourers and on other receipts he applied the net profit rate at 10 per cent. and in the cases of Khera Brothers and Saurastra Engineers Industries he applied the net profit rate at 12 per cent. THE Income-tax Officer also disallowed the expenses claimed by the assessee. THE assessee, aggrieved with the order passed by the assessing authority, filed an appeal before the Commissioner of Income-tax (Appeals), Jodhpur, which was partly allowed and the net profit rate of 12 per cent. in the cases of Khera Brothers and Saurastra Engineers was reduced to 10 per cent.