1997 (9) TMI 158

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..... he sustenance of addition of Rs. 62,900 by the CIT(A) and all the grounds of appeal relate thereto. 3. Briefly stated, the assessee is a firm of three partners engaged in the trading of suitings and shirtings on semi-wholesale and partly on retail basis. In the year of account, which consisted of 17 months, the assessee disclosed gross profit at 9.25 per cent on total sales of Rs. 82,77,702. The .....

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..... ssessee-firm is assessed to tax since asst. yr. 1967-68. No trading addition has been made in earlier or subsequent assessment years. It is argued that the assessee has maintained proper books of accounts which are duly audited. No defects have been pointed out by the AO. It is pointed out that the assessee has maintained so many quality of suitings and shirtings along with so many range in amount .....

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..... reenath Drillers vs. Asstt. CIT 22 ITC 174. 6. In oppugnation, the learned Departmental Representative submitted that the Revenue authorities have given cogent reasons for rejecting the book results and making the impugned addition, which deserves to be maintained. 7. We have considered the rival submissions, perused the orders of the Revenue authorities as also the documents made available to .....

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..... t as compared to the preceding two years. The slight fall in the margin of gross profit was explained by the assessee and it was asserted that the result shown in the books are reasonable looking to the volume and nature of assessee s business. It was also stated before the AO that the profit margin is not uniform in respect of materials sold by the assessee in the year of account. Several dress m .....

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..... absence of any defects found in the audited books of account and merely because the profit declared as per books is slightly low as compared to the preceding year in which plausible explanation has been furnished, rejection of book results is not justified. In a composite trading account of semi-wholesale and retail business, a gross profit of 9.25 per cent on declared sales cannot be said to be .....

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