1980 (2) TMI 162

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssessee and because of non-maintenance of stock registers. 2. The assessee, a partnership firm, was a dealer in electrical goods at Madurai. It deals both on wholesale and retail basis. The assessee showed a gross profit rate of 5.7 per cent. The ITO found that the assessee had not maintained any day to day stock account and the gross profit shown of 5.7 per cent was according to the ITO low, wh .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e had made acquisition attempt to have a day to day stock in respect of fans and in respect of other electrical goods the items being large no such stock account could beneficiary prepared. On the other hands the departmental representative pointed out that as no day to day stock book was maintained there is every possibility of the accounts being not perfect. 4. In the cases of Pandit Bros., vs .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... brought such instances to the knowledge of the assessee. On the other hand the learned counsel points out that he had shown similar dealers getting only a lesser gross profit of only 5 per cent. Gross profit in a trade depends upon may factors. When all the purchases and sales are property vouched there is no need to disbelieve the books of accounts. In as much as the business was closed next yea .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X