9911796707
TMI Blog1982 (7) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... been disputed. The facts briefly stated are that the assessee is a dealer in cloth on wholesale basis. During the accounting period relevant to the assessment year under appeal, it declared GP of Rs. 1.12 lacs on total turnover of Rs. 14.96 lacs reflecting a rate of 7.5 per cent. The ITO considered the GP rate shown by the assessee as low. He also observed that the assessee had not maintained sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. counsel for the assessee at the outset has pointed out that the percentage of profit earned by the assessee on certain sales at 13.5 per cent and 20 per cent as worked out by the ITO is not correct. According to him, the correct percentages were at 9 per cent and 14 per cent respectively. He further submitted that the assessee had incurred transportation expenses of Rs. 23,082 which were de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... story, the rate shown by the assessee at 7.5 per cent was reasonable, and there was no case for estimating the profits. The GP rate shown by the assessee in earlier years as contained in its letter before the AAC are as under: Asst. yr. Sales GP Additions GP rate Deleted by Tribunal 1970-71 1507136 103650 400 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR has not controverted the percentage of profits worked out by the ld. counsel of the assessee in two cases of sales referred to by the ITO. From this fact, it is evident that the ITO was influenced for adopting higher rate of profit by referring to the incorrect figures of percentages of GP in two sales transactions. We are also in agreement with the ld. counsel of the assessee that two compara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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