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TMI Blog1980 (9) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is a registered firm and its business is in manufacturing bone-meal. The assessee purchases bone from butchers, crushes them and sells them as bone-meal. During the year, the turnover was Rs. 40,03,536 and the gross profit was 15.4 per cent as against Rs. 25,08,114 and 19 per cent in the immediately preceding year. The wastage in process was also 10.5 per cent as against 8 per cent in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar wastage had been accepted in the asst. yr. 1972-73. He felt that there was no case for rejection of account books and the addition was deleted. The ITO has come up against this decision. 4. The ld. Departmental Representative submitted that the purchases are supported only by bought-notes and that these could not be a check especially when the grades or the qualities are not available i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sitive finding to that effect. It is not reasonable to expect gradewise classification in bought-notes in matters like the purchase of bones from butchers. The gross profit and wastage cannot be constant. In the light of the stock particulars available in the books, we have to assume that there are ample checks in the accounts themselves. The variation both in wastages and gross profit are also no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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