https://www.taxtmi.com/caselaws?id=8498 Under the proviso to section 13 of the Indian Income-tax Act, 1922, the Court distinguished between yarn and cloth production accounts. For yarn, the assessee's records of cotton issued, yarn produced and wastage were otherwise complete, and the alleged intangible blow-room waste was incapable of exact measurement; the absence of a weighed record did not justify rejection of the disclosed shortage or an addition. For cloth, the absence of a register linking yarn transfers from spinning to weaving made the accounts inadequate for deducing true income, and the Tribunal could rely on the low net weight increase and the failure of the explanation. The 4% cloth shortage estimate was upheld as reasonable. en-us Tue, 23 Mar 1971 00:00:00 +0530 Mon, 27 Apr 2009 15:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8498 Under the proviso to section 13 of the Indian Income-tax Act, 1922, the Court distinguished between yarn and cloth production accounts. For yarn, the assessee's records of cotton issued, yarn produced and wastage were otherwise complete, and the alleged intangible blow-room waste was incapable of exact measurement; the absence of a weighed record did not justify rejection of the disclosed shortage or an addition. For cloth, the absence of a register linking yarn transfers from spinning to weaving made the accounts inadequate for deducing true income, and the Tribunal could rely on the low net weight increase and the failure of the explanation. The 4% cloth shortage estimate was upheld as reasonable. Case-Laws Income Tax Tue, 23 Mar 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8498