9911796707
TMI Blog1982 (5) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... premises of the assessee cash book was not written from 9th Nov., 1978 to 20th Nov., 1978; (ii) the assessee was not able to give details of closing stock amounting to Rs. 1,24,075 even when it was dealing in electric fans and the assessee was sole distributor for Haryana to M/s. American Universal Electric (I) Ltd. which manufactures fans. There was no explanation for difference of Rs. 1,892 between the assessee's account and the account or M/s. American Universal Electric (I) Ltd.; (iii) An entry of Rs. 3,764 which was reflected in the books of M/s. American Universal Electric (1) Ltd. was not reflected in the books of the assessee. With the bank account under pledging, the number of fans shown by the assessee was 49 whereas as per the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme and it was after considering these contention that the AAC deleted the addition of Rs. 25,000. But on certain defects found by the ITO discussed in his order, the AAC sustained the trading results of the assessee as 'nil' against loss of Rs. 35,832 shown by the assessee and profit of Rs. 25,000 taken by the ITO. 4. It is this action of the AAC which is contested by the assessee before us. The ld. counsel for the assessee Mr. D.K. Gupta took us thoroughly through the ITO's letter dt. 8th Sept., 1978 projecting the defects observed by him and the assessee's reply-both of which are placed on the assessee's compilation at pages 3 to 11. He submitted at length that from a mere reading of the AAC's order, it is apparent that it was a clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which was Rs. 350 in the immediately preceding year, was sold out @ Rs. 300 whereas a fan of 36", sale price of which was Rs. 328 in the immediately preceding year, was sold out at Rs. 265. This has also not been controverted that the firm was on verge of closure which ultimately got closed down and the firm also did not function or had any transaction during the period 9th Nov., 1978 to 20th Nov., 1978. Ultimately, the AAC observed that similar was the position with regard to the sale of other varieties of fans. While these were sold at higher rates in the asst. yr. 1975-76, during the assessment year under consideration the unsold stock was sold at a lesser rate. The appellant firm was stated to be a wholesale dealer and a sole distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
