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TMI Blog1978 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the extent of Rs. 5,162 and Rs. 5,820 and shop expenses of Rs. 4,000 and Rs. 5,000 respectively made by the ITO The assessee in this case is carrying retail and semi whole sale business of cloth. For the asst. yr. 1974-75 it declared gross profit of Rs. 28,344 on total sales of Rs. 2,09,237 for 1975-76 he declared GP at of Rs. 36,252 on total sales Rs. 2,64,191 respectively The gross profit r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot on the large scale and it was difficult to understand how 10 persons could change hands in one year. Moreover, the assessee could not established the identify of the employees. He therefore disallowed the total claim under the head salary The AAC, however found that the firm consisted of only 4 partners one Shri Dharamchand s father Shri Gatoomal was 76 years off age and could not manage to loo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o person can do it single handed The expenses on account of the salaries were earlier allowed No doubt during the disputed years, they were slightly higher than the expenses incurred earlier but the income of the assessee was also higher than the earlier years and it is a matter of common knowledge that wages of low paid employees have been rising continuously. We, therefore, uphold the deletion m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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