1999 (1) TMI 502

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..... thod in the jewellery account. This revision relates to the assessment year 1986-87. The assessee-a dealer in textile and jewellery itemsdisclosed turnover of both the items. The assessing authority noticing certain defects rejected the book version of the assessee and resorting to the average running stock method, made an addition to the extent of four times the average running stock in the jewel .....

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..... he difference in gold ornaments was very insignificant, that is, to the extent of only 4.200 grams and, therefore, the average running stock method could not have been resorted to by the assessing officer. It is true that no pattern of suppression has been pointed out in this case. The question for consideration is that when there is no pattern of suppression and when the difference in the stock i .....

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..... tself will not justify the adoption of this method in the absence of any other material. The application of the average running stock method resulted into the addition of more than Rs. 1 lakh. 4.. We are of the considered view that on the facts and in the circumstances of the case, this case requires reconsideration. Before resorting to the average running stock method the assessing authori .....

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