1989 (9) TMI 152

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....ery goods on wholesale basis. Certain additions and disallowances sustained by the CIT(A) have further been challenged before the Appellate Tribunal. 3. The first ground of appeal pertains to trading addition of Rs. 30,621. The ITO during the course of examination of accounts found that in the "Pan Mouri" account average purchase of last lot was Rs. 335.44 per bag whereas average sale per bag on....

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....d shown gross profit rat of 5.3 per cent. This way the ITO added sum of Rs. 30,621. The assessee challenged the order in appeal but remained unsuccessful. Hence, this appeal. 4. We have considered rival submissions. of the parties and have also examined the material on record. The CIT(A) noted various decisions cited on behalf of the assessee that the absence of stock register could not attract ....

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....t year. Instead of adopting the above course, the entire book results relating to turnover of about Rs. 1 crore has been rejected and gross profit rate of 5. 75 per cent was applied against 5.3 per cent shown by the assessee. We are of view that on facts no case for rejection of trading result under proviso to s. 145(1) has been made. We, therefore, direct that trading addition made in this case b....

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....introduction of Expln. 2 to s. 43B the ratio of the said decision can no longer be called to help the assessee. But the matter does not rest there. It will still have to be seen whether the first proviso to s. 43B (introduced by the Finance Act, 1989, w.e.f. 1st April, 1988) is applicable to this case. Here, a couple of points suggest themselves. First, the case has proceeded before both the lower....