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TMI Blog1981 (4) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... f. September, 1976. As a result of a survey conducted and notices issued returns of income were filed for the asst. yrs. 1978-79 and 1979-80 declaring income at Rs. 5,260 and Rs.5,550 respectively. The closing stock as on31st March, 1978was Rs. 38,642 and the sales for the asst. yr. 1979-80 amounted to Rs. 33,569. The ITO did not accept the position that the sales of an assessee would be less than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g children and the withdrawals of Rs. 2,100 in each year were inadequate. He, however, did not make any separate addition for low withdrawals for house-hold expenses of the partners. 3. Aggrieved, the assessee filed appeals in the AAC and submitted that purchases were fully vouched, proper details of opening and closing stock were maintained and for non-maintenance of a stock register the book r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the closing stock. He submitted copies of the orders of the sales tax authorities, wherein the sales as disclosed have been accepted. He also submitted that if the ITO wanted to reject the book result, then the rate of G.P. as shown at 23.9% should not be adopted but the rate of G.P. should have been taken and a lesser figure. He argued that in adopting the rate of G.P. shown by the assessee, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown in each year. That may be so, for the plausible reason given by the assessee that it had to keep a reasonably good stock of medicines to attract customers. This is not an unreasonable explanation. The assessee is a chemist and if the medicines become out of date, these will have to be automatically discarded and written off. The sales shown by the assessee in both the years have been accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1980) 125 ITR 256 (P H).In this case it has been held that if the assessee has challenged the order under appeal on any of the grounds mentioned in s. 246(1)(c) and consequentially the liability to pay penal interest is also challenged, the appeal would be competent. In the light of this judgment, I would hold that the levy of interest under the s. 217 is appealable. Since this has not been deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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