Appeal partially allowed, issues remanded for fresh assessment. Gross profit and salary expenses disallowed.

The Tribunal partly allowed the appeal, restoring the issues of foreign tour and household expenses to the Assessing Officer for fresh adjudication. Additionally, the Tribunal deleted the additions for Gross Profit on alleged short stock and disallowed salary expenses.

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Issues Involved:
1. Validity of the CIT(A)'s order.
2. Estimation of foreign tour expenses.
3. Estimation of household expenses.
4. Addition on account of Gross Profit on alleged short stock.
5. Disallowance of salary expenses.

Issue-wise Detailed Analysis:

1. Validity of the CIT(A)'s order:
The appellant contended that the order of the CIT(A) was against the facts of the case and bad in law. This ground was deemed general and did not require specific comments.

2. Estimation of foreign tour expenses:
The grievance related to the addition of Rs. 60,000/- for foreign tour expenses. The assessee submitted additional evidence under Rule 29 of the ITAT Rules, 1963, similar to the preceding Assessment Year 2015-16, where the ITAT had set aside the issues for fresh adjudication. The Tribunal, following its previous order, restored the issue to the Assessing Officer (A.O.) for fresh adjudication.

3. Estimation of household expenses:
The grievance pertained to the addition of Rs. 1,56,960/- for household expenses. Similar to the foreign tour expenses, the assessee submitted additional evidence, and the Tribunal restored the issue to the A.O. for fresh adjudication, following its order for the Assessment Year 2015-16.

4. Addition on account of Gross Profit on alleged short stock:
The A.O. found a stock discrepancy of Rs. 5,64,441/- during a search and added Rs. 20,200/- as Gross Profit. The assessee argued that the stock was estimated and not accurately weighed, leading to discrepancies. The Tribunal noted that the A.O. worked out the difference on an estimate basis without specific evidence of sales outside the books. The Tribunal found the addition unjustified and deleted it, as the A.O. had not rejected the books of accounts.

5. Disallowance of salary expenses:
The A.O. disallowed Rs. 2,86,000/- out of Rs. 3,79,000/- claimed as salary, accepting only Rs. 93,000/- based on the presence of two employees during the search. The assessee contended that four employees were present, but only two were available during the search. The Tribunal found the disallowance unjustified, noting that the books of accounts, which listed all employees, were accepted by the A.O. The Tribunal deleted the disallowance.

Conclusion:
The Tribunal partly allowed the appeal for statistical purposes, restoring the issues of foreign tour and household expenses to the A.O. for fresh adjudication and deleting the additions for Gross Profit on alleged short stock and disallowed salary expenses.

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