https://www.taxtmi.com/caselaws?id=68157 A trading addition for alleged excessive shrinkage in cloth cannot be sustained where the books of account and accounting system are defect-free and the Assessing Officer has not shown circumstances attracting section 145(1) or 145(2). The assessee maintained stage-wise processing registers, no accounting defect was identified, and the shrinkage percentage was found to have been wrongly taken at 5.25% instead of not exceeding 4.9% for the relevant year. On that basis, a comparison with the earlier year alone was insufficient to justify rejection of the returned trading results, and the addition on account of shrinkage was not restored. en-us Mon, 12 Jun 1995 00:00:00 +0530 Thu, 17 Mar 2011 13:23:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68157 A trading addition for alleged excessive shrinkage in cloth cannot be sustained where the books of account and accounting system are defect-free and the Assessing Officer has not shown circumstances attracting section 145(1) or 145(2). The assessee maintained stage-wise processing registers, no accounting defect was identified, and the shrinkage percentage was found to have been wrongly taken at 5.25% instead of not exceeding 4.9% for the relevant year. On that basis, a comparison with the earlier year alone was insufficient to justify rejection of the returned trading results, and the addition on account of shrinkage was not restored. Case-Laws Income Tax Mon, 12 Jun 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68157