9911796707
TMI Blog1989 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... t. yr. 1981-82. He also noted that in the earlier asst. yr. although the g.p rate was much higher i.e., 13.47 per cent an addition had been made to the g.p. and whicht the assessee had accepted by not filing an appeal. The ITO also found that the assessee did not maintain any quantitative details and there was also the absence of the stock register. The ITO also observed that the assessee had not filed the details of the opening and closing stock. 3. Considering the aforesaid facts the ITO opined that the proviso to s. 145(1) was applicable. He, accordingly, estimated the gross profit at 11 per cent on estimated sales of Rs. 26,49,100 and made an addition of Rs. 31,835. This was confirmed by the CIT(A). 4. The learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, timber, being carried on by the assessee. The learned counsel also referred to the addition of Rs. 1,000 made by the ITO in asst. yr. 1981-82 and stated that no appeal was filed against the same due to the smallness of the amount. According to him this fact by itself should not prejudice the case of the assessee in so far as the asst. year under appeal was concerned, namely, asst. yr. 1982-83. As regards the decline in g.p. rate as compacted to the earlier asst. year it was stated that there could be no comparison since asst. yr. 1981-82 which was the first year of business comprised only 4-1/2 months whereas the asst. year under appeal comprised a full period of 12 months. It was finally stated that the addition made by the ITO be can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reasonable opportunity the assessee to explain the g.p. rate disclosed in the asst. year. Under consideration and also allow him to furnish the relevant documents and details in support of the same. The first effective ground in the assessee's appeal is accordingly allowed for statistical purposes. 7. The only other remaining issue in the appeal pertrains to the addition on account of interest vis a vis the debit balances of the partners of the assessee firm. We however find that this ground does not arise out of the order of the CIT(A). At this stage we were informed by the assessee's counsel that the issue under consideration had been specifically raised before the CIT(A) but he inadvertantly omitted to deal with the same while disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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