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TMI Blog1977 (12) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... out of Basa expenses and (3) Disallowance of Rs. 821 out of shop expenses. 2. The assessee is a partnership concern having income from food grains, adhat, kapas and narma etc. The assessment concerned is for the year 1975-76. The previous year for this assessment year ended on 13th Nov., 1974. The production chart filed by the assessee showed that the shortage in Kapas account was 1.6 per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Kapas and Narma depended upon quality and area but the ITO has made the additions without applying his mind to the relevant factors. It was also stated that normal shortage in these commodities varied from 1.5 per cent to 1.66 per cent. The AAC, however, did not feel satisfied and he sustained the addition made by the ITO. 3. The assessee has come up in appeal to the Tribunal. It is urged by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar were fair and reasonable and should have been accepted. The learned Departmental Representative, on the other hand has supported the orders of the authorities below. 4. We have considered the rival submissions. In Kapas account the shortage had worked out to 1.6 per cent. The authorities below felt that the normal shortage was 1.6 per cent and in this view reliance seems to have been placed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent to 1.66 per cent. Considering these facts we fell that the shortage shown were reasonable and the addition of Rs. 15,425 made in the trading accounts was uncalled for. Hence we delete it. 5. We take up now items no 2 and 3 together. The assessee had claimed shop expenses of Rs. 4,735 which included Basa expenses of 2,235. The ITO disallowed the entire amount of Basa expenses and another Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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