1977 (3) TMI 57

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..... account of low gross profit. 2. The assessee is a registered firm carrying on wholesale business in art silk and mill made cloth. On a total turnover of Rs. 14,09,936 the gross profit disclosed was Rs. 84,650 which worked out only to 6 per cent. The Income-tax Officer held that the result disclosed were low when taking into account the line of business carried on by the assessee. Taking this asp .....

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..... d that the opening stock was Rs. 77,000 and this by itself would indicate that there was quick turnover during the year of account which resulted in lower rate of gross profit. Taking these aspects into account, it was submitted that the book results disclosed by the assessee should have been accepted. 4. The learned Departmental Representative, on the other hand, submitted that the opening stoc .....

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