JUDGMENT

SABYASACHI MUKHARJI, J.

( 1 ) THIS appeal arises out of the decision of the Allahabad High Court dated 24-9-1971. The High Court by the order impugned dismissed an application under S. 256 (2) Income-tax Act, 1961 (hereinafter called the act ). The assesses, a firm of two partners was at the relevant time a licenced vendor of country liquor. For the assessment year 1965-66, the Income-tax Officer rejected its account book on the ground that sales and expenses were not verified and the margin of profit shown was low. It may not be inappropriate in view of the contentions urged before us to refer to the order of the Inspecting Assistant Commissioner for the assessment year 1965-66 under S. 27 1 (1) (c) read with S. 274 (2) of the Act.

( 2 ) FOR the assessment year 1965-66, the Income-tax Officer, as noted by the Inspecting Assistant Commissioner, rejected the book result showing sales of country liquor at Rs. 5,82,234. 00 and the profit margin at 4 Per Cent for lack of verifiability of sales and expenses and low margin of profit. The Income-tax Officer estimated the sales at Rs. 7,60,000. 00 being Rs. 6,50,000. 00 in Lakhibagh shop and Rs. 1,10,000. 00 in Magra shop, and adopt