9911796707
TMI Blog1979 (10) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... rm deriving income from sale of grass. For the year under consideration the sales shown by the assessee were to the tune of Rs. 4,20,536 and gross profit at Rs. 59,960 i.e. 12.25 per cent. While completing the assessment of the assessee the ITO was of the view that the gross profit shown by the assessee was low as compared to earlier years. He resorted to the provisions of s. 145(1) and after di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the adhoc addition was made by the ITO against which the assessee went in appeal before the AAC and met with partial success i.e., the AAC gave a partial relief of Rs. 3,000 only. 3. Before the Tribunal, it was contended on behalf of the assessee that for the year under consideration, the turnover has gone to practically double of the turnover for the last year. Last year, the gross profit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration, the assessee sold grass to Cellulose products of India to the tune of Rs. 68,452-56 to Jamnadas Virumal Bhatia, Rs. 16,286-85 and to Chaturbhai Prabhudas Patel Rs. 99,428-93. In short out of the total sales of Rs. 4,20,536, the wholesale sales amounted to Rs. 3,41,954. The Retail business was however small and considering the demurrage of Rs. 23,000 paid by the assessee, the margin of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter. Since the assessee's Representative conceded that some addition is called for, in fairness we direct that Rs. 5,000 addition would meet the ends of justice. We further clarify that having regard to the fact that the partners have agricultural income, the withdrawals made by them, though appear to be small, does no attract any addition. 6. In the result, the assessee's appeal is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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