9911796707
TMI Blog1986 (6) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... w is against law and facts and exhorbitant and may kindly be ordered to be deleted." 2. The assessee is a registered firm by status and deals in cloth business on retail as well as wholesale basis. The accounts are maintained on mercantile basis and the accounting period was the year ending14th Nov., 1982. The assessee showed sales at Rs. 17,83,932. Sales of Rs. 14,61,323 were attributable to wholesale business and the balance sales of Rs. 3,22,609 to retail business. A gross profit rate of 5.5 per cent was shown on the combined sales. The total gross profit came to Rs. 98,121. The ld. ITO noted that retail sales had decreased by about Rs. 46,000. The ld. ITO required the assessee to give the break up of total gross profit. On estimate ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (d) quality of cloth sold was not mentioned; (e) full particulars of the purchases were not given; (f) expenses said to have been incurred on account of commission, cartage and freight etc., were not fully vouched; (g) the assessee was having a combined account for both the sales; and (h) no satisfactory explanation for fall in retail sales was furnished. The ld. ITO thus on account of the above defects rejected the assessee's account books and trading version by applying the provisions of s. 145(1) of the IT Act, 1961. An addition of Rs. 29,883 was made in the trading result with the following observations: "In view of the above, I hold that the accounts are not correct and complete and the method of accounting employed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (A) and contended that trading results reflected by the assessee should have not been disturbed. 8. On behalf of the Revenue, Shri S.K. Bansal, ld. departmental representative placed reliance on the orders of the Revenue authorities. 9. Rival submissions have been heard and considered. The defects pointed out by the ld. ITO were not shown to be non-existent. It was also not explained as to how in the wholesale business the G.P. rate was uniform. The assessee also could not explain the decline in the G.P. rate on the retail sales no doubt the turnover had decreased. The type of points mentioned by the assessee about the trade completion etc. was a general submission. In the circumstances of the assessee's case we are satisfied that b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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