G.S.Singhvi, J.

1. In this appeal filed under S. 260A of the IT Act, 1961 (for short, the Act), the assessee has prayed for determination of the following question of law :

"Whether under the facts and circumstances of the case the Honble Tribunal was justified in concurring with the application of the provisions of Section 145(2) of the IT Act and estimating the income at a gross profit at 0.27 per cent of the turnover resulting into the enhancement of the income maintained by the learned CIT(A) at Rs. 1,60,000 by an amount resulting into the total income at Rs. 2,60,000 approximately."

2. The appellant-assessee is carrying on the business of sale and purchase of lottery tickets on commission basis. He did not file return of income for the asst. yrs. 1988-89 to 1994-95 till his premises were searched on 29th Oct., 1993, in terms of Section 132(1) of the Act and notices were issued by the Asstt. CIT, Investigation Circle-I, Patiala (hereinafter described as the AO). In the course of search, cash book, ledger and vouchers were seized from the premises of the appellant. He made a surrender under Section 132(4) of the Act of Rs. 1,00,000 each for the asst. yrs. 1993-94 and 199