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TMI Blog1973 (12) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... f by a common order. 2. The assessee is a registered firm carrying on business in the manufacture of medicines. During the A.Y. 1974-75, revenant to the accounting period ending 31 March, 1974, the total net sales were declared at Rs. 10,20,861 on which a gross profit of Rs. 2,08,711, giving a GP rate of 20 per cent was shown. The ITO found that during the A.Ys. 1966-67 to 1971-72 the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom which the details of raw material used daily and the drug manufactured on each day could be known and checked. It was contended that the assessee maintained various registers which had been prescribed by the Central and the State Government and these were duly checked by the Government authorities. It was also submitted that the assessee used to extract the details of closing stock at the end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly, he deleted the addition of Rs. 50,000 made by the ITO. Aggrieved, the Department has come up in the present appeal. The assessee has also supported the findings of the AAC by his cross objection. 4. We also heard the learned representatives of the parties at length and in our opinion the order of the AAC does not call for any interference. One of the grounds taken by the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Rules, 1962. The various registers were duly maintained by the assessee, as prescribed by the Central and the State Excise authorities and were duly checked by the above authorities. If the ITO does not choose to examine these records and they are later on looked by the AAC, it does not amount to production of or entertainment of fresh evidence by the AAC. We are, therefore, unable to accept thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ast certain additions were accepted by the assessee because the accounts were not maintained in great details, as during the year, under consideration. Having regard to all the facts and circumstances of the case we of the opinion that the AAC was quite justified in deleting the addition of Rs. 50,000 made by the ITO towards the trading account. The order of the AAC is therefore, upheld. 6. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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