MESSRS THE INTERNATIONAL BODY BUILDERS- vs COMMISSIONER OF INCOME- — 1971 PTD 513

Citation: 1971 PTD 513

Court: Lahore High Court

Year: 1970

Decision Date: 1970-12-31

Parties: MESSRS THE INTERNATIONAL BODY BUILDERS- vs COMMISSIONER OF INCOME- JUDGMENT

Headnotes

Case cited as 1971 PTD 513

Judgment Text

Court Name: Lahore High Court Judge(s): Sheikh Anwarul Haq, Sardar Muhammad Iqbal Title:MESSRS THE INTERNATIONAL BODY BUILDERS- vs COMMISSIONER OF INCOME- JUDGMENT Reported As: 1971 PTD 513 Result: Petition dismissed Judgment JUDGMENT SARDAR MUHAMMAD IQBAL, J.-The business of the petitioner-- firm is the repair and construction of bodies of buses and trucks. It submitted statement of accounts for the assessment year 1961---62 showing receipts from the construction of bodies at Rs. 80,365.00 and from the repairs at Rs. 35,395.00. The gross profit of Rs. 23,239.00 was worked at 20 percent. The Income--tax Officer found that the assessee had not maintained any order book to show the number of buses and trucks for which the bodies had been constructed ; that no manufacturing account had been maintained to co-relate the consumption of raw material with the construction of bodies of buses and trucks, and that all the purchases were not properly vouched e. g. There were kacha vouchers for certain purchases which made the purchase figures questionable. He further held that all the partners were major and living separately, and the drawings shown by them were extremely low and not enough to meet their personal liabilities. He concluded that the results shown by the assessee could not be accepted, and, therefore, proceeded to estimate receipts from the construction of buses and trucks at Rs. 1,20,000.00 and fixed the gross profit at the rate of 25 percent. He estimated receipts from…

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